Jobless claims unexpectedly jumped last week, increasing by 14,000 to nearly a one-year high of 249,000.
This figure surpassed even the most pessimistic forecasts in Econoday’s survey and was significantly higher than the consensus estimate of 236,000.
The number of people collecting unemployment benefits beyond their initial week rose by 33,000 to 1.88 million. This is the highest level of continuing claims since 2021, when the economy was still recovering from the pandemic.
The increase in continuing claims suggests that Americans who have lost their jobs are struggling more to find new employment.
The largest rise in new claims was reported in Michigan.
Texas, recently impacted by a hurricane, also experienced a significant increase, which may be temporary.
This week, the Federal Reserve stated that the risks of a weakening labor market are now roughly balanced with the risks of rising inflation.
Share your thoughts by scrolling down to leave a comment.
