Key facts
- Initial jobless claims rose 13,000 to 225,000 for the week ended May 30, the highest level since early February.
- The four-week moving average of claims increased to 214,750.
- US employers announced 97,006 job cuts in May, with 39% in the technology sector.
- Planned job cuts rose 3% compared to the same period last year.
- The number of people receiving unemployment benefits fell to 1.777 million during the week ended May 23.
- Worker productivity growth slowed faster than initially thought.
The number of Americans filing claims for unemployment benefits increased to a four-month high of 225,000 in the week ended May 30, exceeding economists' forecasts. This rise is partly attributed to seasonal factors around the Memorial Day holiday. Despite the increase, the four-week moving average of claims remains subdued at 214,750, indicating a stable labor market. Layoffs are low by historical standards, with 97,006 job cuts announced in May, a 3% increase from last year, primarily in the technology sector. The Federal Reserve's Beige Book report noted a 'low-hire, low-fire' environment, with hiring focused on critical roles or attrition replacement. The number of people receiving ongoing unemployment benefits fell to 1.777 million. Worker productivity growth also slowed faster than initially thought. These weekly claims data do not impact the upcoming May employment report, which is expected to show 85,000 nonfarm payroll jobs added and the unemployment rate holding steady at 4.3%.