US weekly jobless claims rise slightly

The number of Americans filing new claims for unemployment benefits edged up last week, Reuters cited a data released by the Labour Department on Thursday.

However, underlying indicators suggest the labour market remains robust and continues to support the overall economy.

Initial claims for state unemployment benefits rose by 8,000 to a seasonally adjusted 229,000 for the week ending June 1st. This is slightly higher than the 220,000 claims anticipated by economists surveyed by Reuters.

Despite this increase, the labour market is still experiencing a healthy re-balancing towards pre-pandemic levels.

This comes after the Federal Reserve implemented a series of interest rate hikes, totalling roughly 525 basis points since March 2022, with the aim of moderating economic demand.

Continuing claims, which track individuals receiving benefits beyond the initial week, also recorded a modest increase. These claims rose 2,000 to a seasonally adjusted 1.792 million during the week ending May 25th.

Earlier this week, data revealed a larger-than-expected decline in US job openings for April. This resulted in the number of available jobs per unemployed person reaching its lowest level since June 2021.

Positive signs continue as US employers reported the lowest number of job cuts in March since December 2023. Layoff announcements in 2024 are also lower compared to last year.

In May, employers announced 63,816 job cuts, representing a 1.5 per cent decrease from April (64,789) and a significant 20 per cent decline compared to May 2023 (80,089). Year-to-date, layoff announcements are down 7.6 per cent compared to the same period in 2023.