U.S. Jobless Claims Rise, Continuing Claims Hit Record Since 2021

The U.S. labor market showed fresh signs of strain as initial jobless claims rose by 14,000 to 240,000 in the week ending May 24, according to seasonally adjusted data released by the Department of Labor.

This marks the highest level of new claims in over two months and continues a recent trend of elevated filings. The previous week’s figure was revised slightly lower, from 227,000 to 226,000.

Despite the increase, the four-week moving average for initial claims, a less volatile measure, edged down by 250 to 230,750 after the prior week’s average was revised down by 500.

Insured Unemployment Edges Higher

Meanwhile, continuing claims, which reflect the number of people still receiving unemployment benefits, rose by 26,000 to 1,919,000 for the week ending May 17. This is the highest level since November 13, 2021, when the figure stood at 1,970,000. The prior week's number was revised down by 10,000 to 1,893,000.

Other notable figures:

• The four-week average for continuing claims climbed by 2,750 to 1,890,250, its highest point since November 27, 2021.
• The insured unemployment rate increased by 0.1 percentage points to 1.3%, breaking a streak of flat readings in previous weeks.

These developments suggest that while the U.S. labor market remains resilient by historical standards, pressures are beginning to build, particularly in the form of elevated continuing claims. Analysts will be watching future data to see whether this softening trend persists or reverses in the coming weeks.

Source: U.S. Department of Labor