Data released by the Labor Department on Thursday, June 4, showed initial jobless claims increased by 13,000 to a seasonally adjusted 225,000 for the week ended May 30.
Economists surveyed by Reuters had expected claims to total 213,000. The four-week moving average, which helps smooth weekly fluctuations, edged up to 214,750.
According to Bloomberg, the latest reading may have been influenced by seasonal distortions linked to the Memorial Day holiday and the start of summer breaks in some school districts.
Economists polled by Bloomberg had forecast initial claims of around 215,000.
While the increase points to some moderation in labour market conditions, layoffs have remained broadly contained this year. Weekly claims have largely stayed within a range of 190,000 to 230,000 despite announcements of workforce reductions by several technology companies amid the growing adoption of artificial intelligence.
Separate data from Challenger, Gray & Christmas showed US employers announced 97,006 job cuts in May, an increase of 16% from April. The technology sector accounted for nearly 39% of the announced layoffs. However, planned job cuts were only modestly higher than levels recorded during the same period last year.
The labour market assessment was echoed in the Federal Reserve’s Beige Book released on Wednesday. The report noted that employment activity saw “little to no change” in May, with most regions describing hiring and firing activity as subdued. Employers continued to recruit selectively, focusing primarily on essential positions and replacement hiring.
Meanwhile, continuing claims, which reflect the number of people receiving unemployment benefits after an initial week of aid, fell by 8,000 to 1.777 million in the week ended May 23. Bloomberg also reported that continuing claims stood at about 1.78 million, suggesting that workers who lose jobs are still finding opportunities in a relatively stable employment market.
The latest claims figures do not factor into Friday’s closely watched May employment report because they fall outside the survey period. Economists surveyed by Reuters expect nonfarm payrolls to have increased by 85,000 jobs in May, compared with 115,000 jobs added in April, while the unemployment rate is projected to hold steady at 4.3%.
Recent labour market releases have pointed to slower hiring rather than a sharp deterioration. The Job Openings and Labor Turnover Survey (JOLTS) released earlier this week showed hiring eased in April while layoffs also declined, indicating that employment growth continued to be supported by historically low levels of job cuts.
