US jobless claims rise to highest since October 2021 in sign labor market is cooling


WASHINGTON: The number of jobless claims in the United States has risen to its highest level since October 2021, providing further evidence that the laboratory market gradually cools down.
The number of initial jobless claims rose by 22,000 to 264,000 in the week ended May 6, Labor Department data showed on Thursday. The reading was above all estimates from a Bloomberg poll of economists.
The standing claims, which include people who have been on unemployment benefits for a week or more, are a good indicator of how difficult it is for people to find work after losing their jobs. In the week ended April 29, the number rose by 12,000 to 1.81 million.
The number of applications for unemployment benefits has tended to increase in recent months as the situation on the labor market has deteriorated in some areas. redundancies The developments that began in economic sectors such as technology and banking are increasingly affecting companies throughout the economy.
Looking ahead, there could be more job cuts as the year-long Federal Reserve rate hikes and tighter credit conditions continue to weigh on the economy.
On an unadjusted basis, claims increased by around 14,000 to 234,084. Massachusetts saw the biggest increase, while California and Missouri also saw big gains.
Data may be inconsistent from week to week. The four-week moving average of initial claims, which is smoothing out some volatility, rose to 245,250, marking its highest level since November 2021.
Separate data last week showed that hiring picked up in April and the unemployment rate fell to a multi-decade low, indicating a still-resilient labor market.
What Bloomberg Economics Says…
“The recent jump in jobless claims is consistent with our analysis of the WARN announcements, which have been pointing to an imminent slowdown in the labor market since earlier this year. This will be reflected in the coming weeks as we see clearer signs of easing in the labor market in the monthly job report.”
— Eliza Winger, economist

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