US Jobless Claims Edge Higher to 248K as Labor Market Shows Mixed Signals

US Jobless Claims Edge Higher to 248K as Labor Market Shows Mixed Signals

Weekly Jobless Claims Rise to 248K

The US Department of Labor (DOL) reported Thursday that Initial Jobless Claims for the week ending May 31 increased to 248,000, unchanged from the revised figure of the previous week. This level remains above historical averages and may indicate softening labor market conditions.

Four-Week Average Ticks Higher

The four-week moving average climbed to 240,250, up 5,000 from the prior week’s revised average. This trend points to a gradual shift in unemployment dynamics, raising concerns about the resilience of the labor market amid ongoing economic uncertainty.

Continuing Claims Climb to 1.956 Million

In addition, Continuing Jobless Claims—a metric tracking individuals who have already filed and are still receiving benefits—rose by 54,000 to 1.956 million for the week ending May 24. The seasonally adjusted insured unemployment rate stood at 1.3%, reflecting a steady but elevated pace of jobless support uptake.

What It Means for Markets and the Fed

The uptick in jobless claims adds to recent data that could bolster arguments for a more dovish monetary policy stance by the Federal Reserve. A persistently soft labor market may support the case for interest rate cuts later this year, particularly if inflation continues to moderate.

Related Reads on Tredu:

• US Labor Market Tracker: What Weekly Claims Are Telling Us
• Fed Policy Outlook: Will Jobs Data Influence Rate Cuts?
• Economic Indicators to Watch in Q2