US recurring jobless reach highest level since 2021
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The news: Weekly claims for unemployment benefits reached their highest level in eight months last week, as the number of Americans filing for unemployment insurance climbed to its highest level since November 2021.
The numbers: Data from the Department of Labor saw 248,000 initial jobless claims filed for the week ending 7 June, steady from the week prior but above economists’ expectations of 242,000.
1.96 million recurring claims were filed, an increase from the 1.9 million filed the week prior and the highest level since the end of 2021. Continuing claims is used as a signal that individuals looking for work are taking longer to find new roles.
The context: The jump in recurring claims comes alongside a hiring slowdown, with job growth also slowing in May. Inflation data this week came in softer than expected, with tariffs having a smaller impact on price increases than anticipated. The US Labor Department said consumer prices increased 0.1% in May, and 2.4% over the year.
In separate data released on Thursday, US producer price inflation remained muted in May, with the PPI rising just 0.1% from the month prior.
The sources: US Department of Labor, US Bureau of Labor Statistics, Bloomberg
