Jobless claims unexpectedly rose to highest level since January last week
390K jobs added to US economy in May
May jobs report beats expectations with 390K jobs added to the economy. FOX Business’ Edward Lawrence with more.
The number of Americans filing for unemployment benefits unexpectedly jumped last week, spiking to the highest level since mid-January in a sign the hot labor market could be starting to cool.
Figures released Thursday by the Labor Department show that applications for the week ended June 4 rose to 229,000 from an upwardly revised 202,000 a week earlier, missing the 210,000 forecast by Refinitiv analysts. It marked the biggest one-week increase since last July. The four-week average of new claims, which smooths volatility in the weekly figures, also increased slightly to 215,000 last week.
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Continuing claims, or the number of Americans who are consecutively receiving unemployment aid, held steady at 1.3 million – the lowest point since December 1969. By comparison, just a little over one year ago, more than 15.38 million Americans were receiving benefits.
"The labor market is cooling a bit after running extremely hot into early 2022," said Bill Adams, chief economist at Comerica Bank. "Initial claims for unemployment insurance are still extremely low, but they are up by 63,000 from their March level, which was the lowest in over half a century. Job postings have also pulled back somewhat, another sign that the job market is getting less red hot."