Initial jobless claims have risen for the third straight week, according to the Department of Labor, another signal and data point showing softening in the labor market.
Enhance:
- Initial claims: 229,000 (seasonally adjusted)
- Increase from previous week: 8,000
- Highest level in the last four weeks
- Second highest level in the last eight months
NOTE: The four-week average of initial claims is now trending above 220,000 for the first time in eight months, indicating a sustained rise in unemployment claims.
Continuing Claims: Mostly unchanged at 1.792 million for the week ending May 25th, up 2,000 claims from the previous week but marks the fifth consecutive week-over-week increase.
Why It Matters: The increase in jobless claims could signal emerging challenges in the labor market, potentially impacting consumer confidence and spending. Sustained rises in both initial and continuing claims may prompt concerns about broader economic stability and labor market resilience.
Bottom Line: The rise in initial jobless claims for the third straight week highlights a potential softening of the labor market, with continuing claims also on the rise. All signs are pointing to a weaker jobs report on Friday. Job openings have hit a 3-year low, ADP was underwhelming, and jobless continues to trend higher. With next week’s fed meeting on the calendar Friday’s jobs report could be even bigger than normal
