WASHINGTON: Applications for US unemployment benefits hit the highest level since October 2021, evidence adds laboratory market Slowly getting colder.
Initial unemployment claims rose by 22,000 to 264,000 in the week ended May 6. Labour Department The data showed Thursday. The reading was higher than all estimates in a Bloomberg survey of economists.
Continuing claims, which include people who have received unemployment benefits for a week or more and are a good indicator of how hard it is for people to find work after losing their jobs, rose 12,000 in the week ending April 29. rose to 1.81 million.
Applications for unemployment benefits have been rising in recent months as some pockets of the labor market have worsened. lay off What started in white-collar sectors including technology and banking is rapidly starting to affect companies across the economy.
Looking ahead, more job cuts could be on the horizon as a year’s worth of interest rate hikes loom federal Reserve And tighter credit conditions continue to weigh on the economy.
On an unadjusted basis, claims rose by nearly 14,000 to 234,084. Massachusetts saw the biggest jumps, while California and Missouri also reported large increases.
Data can be choppy from week to week. The four-week moving average of initial claims, which smoothed out some volatility, rose to 245,250, the highest level since November 2021.
Separate data from last week showed hiring accelerated in April and the unemployment rate hit a multi-decade low, pointing to a still-resilient labor market.
What does Bloomberg’s economics say…
“The recent surge in job claims is consistent with our analysis of WARN notices that have suggested an imminent softening of the labor market since earlier this year. This will be reflected in the coming weeks, when we see clear signs of labor-market easing in the monthly jobs report.
– Eliza Winger, economist
Initial unemployment claims rose by 22,000 to 264,000 in the week ended May 6. Labour Department The data showed Thursday. The reading was higher than all estimates in a Bloomberg survey of economists.
Continuing claims, which include people who have received unemployment benefits for a week or more and are a good indicator of how hard it is for people to find work after losing their jobs, rose 12,000 in the week ending April 29. rose to 1.81 million.
Applications for unemployment benefits have been rising in recent months as some pockets of the labor market have worsened. lay off What started in white-collar sectors including technology and banking is rapidly starting to affect companies across the economy.
Looking ahead, more job cuts could be on the horizon as a year’s worth of interest rate hikes loom federal Reserve And tighter credit conditions continue to weigh on the economy.
On an unadjusted basis, claims rose by nearly 14,000 to 234,084. Massachusetts saw the biggest jumps, while California and Missouri also reported large increases.
Data can be choppy from week to week. The four-week moving average of initial claims, which smoothed out some volatility, rose to 245,250, the highest level since November 2021.
Separate data from last week showed hiring accelerated in April and the unemployment rate hit a multi-decade low, pointing to a still-resilient labor market.
What does Bloomberg’s economics say…
“The recent surge in job claims is consistent with our analysis of WARN notices that have suggested an imminent softening of the labor market since earlier this year. This will be reflected in the coming weeks, when we see clear signs of labor-market easing in the monthly jobs report.
– Eliza Winger, economist