US Initial Jobless Claims Increase To Highest Level Since August
Initial applications for US unemployment benefits rose last week to the highest level since August, consistent with signs of gradual cooling in the labor market.
(Bloomberg) -- Initial applications for US unemployment benefits rose last week to the highest level since August, consistent with signs of gradual cooling in the labor market.
Initial claims increased by 22,000 to 231,000 in the week ended May 4, according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 212,000 applications.
Up until this latest week, first-time applications had been confined in a narrow 200,000-222,000 range for the last three months.
While resilient demand is making companies reluctant to dismiss workers, the latest monthly jobs report showed a moderation in hiring. Still, the labor market has largely outperformed expectations over the last year and powered the economy.
Federal Reserve officials are keeping a close eye on labor demand and wage growth as they debate when it might be appropriate to lower interest rates.
The four-week moving average, which helps smooth short-term fluctuations in weekly claims figures, increased to 215,000, the highest since February.
Continuing claims, a proxy for the number of people receiving unemployment benefits, rose by the most in a month to 1.79 million in the week ended April 27.
Initial claims, before adjustment for seasonal influences, rose nearly 20,000 to 209,324. That was the biggest gain since the start of the year and more than half the advance was due to a jump in New York. Claims also picked up in California, Indiana and Illinois.
In the 20 years that preceded the Covid-19 pandemic, weekly initial applications averaged about 345,000, and continuing claims roughly 2.9 million.
--With assistance from Kristy Scheuble.
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