Jobless Claims Jumped Last Week to Highest Level Since October 2021

By Gabriel T. Rubin

Worker filings for U.S. unemployment benefits increased sharply last week, a possible early sign of cooling in the strong labor market.

Initial jobless claims, a proxy for layoffs, rose by 28,000 to a seasonally adjusted 261,000 in the week ended June 3, the Labor Department said Thursday. That was the highest level since Oct. 30, 2021, when claims were 264,000.

The four-week average of weekly claims, which smooths volatility in the weekly numbers, rose by 7,500 to 237,250. Claims averaged about 220,000 a week in 2019, just before the pandemic began and when the labor market also was strong.

Ohio, California and Minnesota reported the largest increases in claims last week on an unadjusted basis.

Initial claims have stayed at relatively low levels as workers continue to find jobs quickly, despite layoffs at tech, finance and other companies. U.S. employers added 339,000 jobs in May, beating expectations of a gradual slowdown in hiring, and the jobless rate remained historically low at 3.7%.

Across the economy, job openings increased to 10.1 million in April from 9.7 million in March, far exceeding the 5.7 million unemployed Americans that month. Average hourly earnings grew a solid 4.3% in May from a year earlier, similar to annual gains in March and April.

Continuing claims, which reflect the number of people seeking ongoing unemployment benefits, decreased by 37,000 to 1.76 million in the week ended May 27. Continuing claims are reported with a one-week lag.

Write to Gabriel T. Rubin at gabriel.rubin@wsj.com

(END) Dow Jones Newswires

June 08, 2023 09:08 ET (13:08 GMT)

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