Key facts
- Initial jobless claims rose 13,000 to 225,000 for the week ended May 30.
- Economists had forecast 213,000 claims for the latest week.
- The four-week moving average of claims increased to 214,750.
- U.S.-based employers announced 97,006 job cuts in May, up 16% from April.
- The number of people receiving unemployment benefits fell 8,000 to 1.777 million.
- The Federal Reserve's Beige Book reported employment showed 'little to no change' in May.
The number of Americans filing claims for unemployment benefits increased more than expected last week, with initial claims rising 13,000 to a seasonally adjusted 225,000 for the week ended May 30. This figure exceeded the Reuters poll forecast of 213,000. However, the four-week moving average of claims saw a more modest increase of 6,500 to 214,750, suggesting the underlying trend remains stable. Despite significant job cuts in the technology sector, overall layoffs have been low, keeping claims within a 190,000-230,000 range for the year. In May, U.S.-based employers announced 97,006 job cuts, a 16% increase from April, with 39% of those in technology. Planned job cuts rose only 3% compared to the same period last year. The Federal Reserve's Beige Book indicated that employment showed 'little to no change' in May, with most districts describing a 'low-hire, low-fire environment' and selective hiring focused on critical roles or attrition replacement. The number of people receiving unemployment benefits after the initial week of aid fell by 8,000 to 1.777 million for the week ended May 23, a proxy for hiring. The claims data do not impact the upcoming May employment report, which falls outside the survey period. Economists predict nonfarm payrolls rose by 85,000 in May, down from 115,000 in April, with the unemployment rate forecast to remain unchanged at 4.3%. A separate report from the Labor Department's Job Openings and Labor Turnover Survey showed that hiring decreased while layoffs fell in April, suggesting the April payroll increase was driven by lower layoff numbers.