US initial jobless claims rose by 22,000 in the week ended May 4 to a total of 231,000 — their highest level since the week of Aug. 26, 2023, the US Department of Labor reported today. The previous week’s level was revised upward by 1,000.
CNBC reported that the uptick in claims suggests a potential shift in an otherwise robust labor market.
“Weekly jobless claims are one of the timeliest indicators of when the economy is starting to undergo serious deterioration, and the magnitude of new layoffs this week looks worrisome,” CNBC quoted Christopher Rupkey, chief economist at Fwdbonds, as saying. “One week does not a trend make, but we can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
Meanwhile, the four-week moving average increased by 4,750 in the latest week to a level of 215,000. The previous week’s average was revised upward by 250.