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US jobless claims rise to 4-month high; labor market remains stable

Created at 4 Jun · 12:49 PM7 sources↑ Market-relevant6 events
IN SHORT

Initial jobless claims rose 13,000 to 225,000 for the week ended May 30, the highest level since early February. Despite the increase, the four-week moving average remains subdued, indicating labor market stability. Worker productivity growth also slowed faster than initially thought.

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Key Numbers

225,000initial jobless claims for the week ended May 30
214,750four-week moving average of jobless claims
97,006US job cuts announced in May
39%job cuts in the technology sector in May
3%increase in planned job cuts compared to last year
1.777 millionpeople receiving unemployment benefits during the week ended May 23
85,000projected nonfarm payroll jobs added in May
4.3%projected unemployment rate for May

Who's Involved

Labor Department
reported weekly jobless claims and will release the May employment report
Challenger, Gray and Christmas
reported on US job cut announcements in May
Federal Reserve
monitoring labor market and inflation for interest rate decisions
Pantheon Macroeconomics
commented on the subdued trend in jobless claims
Oxford Economics
commented on potential seasonal factors affecting jobless claims
Oliver Allen
senior U.S. economist at Pantheon Macroeconomics
Nancy Vanden Houten
lead U.S. economist at Oxford Economics

↳ Why This Matters

The data provides insight into the health of the US labor market, which is a key factor the Federal Reserve monitors when making interest rate decisions. While claims have risen, the overall trend suggests continued labor market stability.

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%.

Frequently asked questions

Initial jobless claims rose 13,000 to a seasonally adjusted 225,000 for the week ended May 30, the highest level in four months.

The four-week moving average of claims increased to 214,750, but overall claims remain subdued by historical standards, indicating a stable labor market.

Layoffs remain low, although US employers announced 97,006 job cuts in May, with 39% in the technology sector. Planned job cuts rose 3% year-over-year.

The Beige Book described employment showing 'little to no change' in May, with most districts reporting a 'low-hire, low-fire' environment focused on critical roles or attrition replacement.

The claims data fall outside the survey period for the May employment report and do not impact its figures, which are expected to show 85,000 nonfarm payroll jobs added and the unemployment rate holding steady at 4.3%.

What Happens Next

01Release of the May employment report on Friday.
02Monitoring of weekly jobless claims for further trends.

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Cadence
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How It Developed

5 Jun · 4:05 AM
Article anticipates slower May job growth (85k est.) but stable labor market, with no material impact from Middle East conflict yet.
Reuters via PiQSuite
4 Jun · 2:55 PM
US weekly jobless claims hit a four-month high, but economists attribute it to holiday volatility, not labor market weakness.
PiQSuite
4 Jun · 2:55 PM
New data shows weekly jobless claims rose to a four-month high, but economists attribute this to holiday volatility and a stable underlying trend.
Reuters via PiQSuite
4 Jun · 1:23 PM
Restates earlier reporting on jobless claims and layoffs, noting tech sector cuts due to AI.
Economic Times via PiQSuite
4 Jun · 12:45 PM
New article confirms jobless claims rose more than expected but labor market remains stable.
PiQSuite
4 Jun · 12:40 PM
US jobless claims rose to 225,000 last week, exceeding expectations, but the labor market remains stable.
Reuters via PiQSuite

Sources

T1
US weekly jobless claims increase more than expected; labor market remains stablem.piqsuite.com
T1
US weekly jobless claims increase more than expected; labor market remains stablem.piqsuite.com
T1
Initial Unemployment Claims Up 13K, Higher Than Expectedm.piqsuite.com
T1
Slower, but steady US job growth anticipated in Maym.piqsuite.com
T1
US weekly jobless claims increase to four-month high; worker productivity revised downm.piqsuite.com
T1
US weekly jobless claims increase more than expected; labor market remains stablem.piqsuite.com
T1
US weekly jobless claims increase to four-month high; worker productivity revised downm.piqsuite.com

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