The number of Americans filing new claims for unemployment benefits increased in the final week of May, suggesting some softening in the labor market.
According to data released by the U.S. Department of Labor, seasonally adjusted initial jobless claims rose to 247,000 for the week ending May 31. This represents an increase of 8,000 from the previous week’s revised level of 239,000. The original figure for that week had been reported as 240,000.
The four-week moving average for initial claims, which helps smooth out weekly volatility, also rose. It reached 235,000, up by 4,500 from the prior week’s revised average of 230,500. This upward trend indicates a gradual rise in new applications for unemployment assistance.
Meanwhile, the data for continuing claims, which reflect the number of individuals still receiving unemployment benefits, presented a more mixed picture. For the week ending May 24, the seasonally adjusted insured unemployment rate fell slightly to 1.2%, down by 0.1 percentage point.
Continuing claims decreased by 3,000 to a total of 1,904,000. This followed a downward revision of the prior week's figure, which was adjusted from 1,919,000 to 1,907,000.
However, the four-week moving average of continuing claims edged higher, reaching 1,895,250. This is an increase of 8,000 from the previous week’s revised average of 1,887,250. It marks the highest level for this average since late November 2021, when it stood at 1,923,500.
The latest figures point to a labor market that remains relatively resilient but may be beginning to feel the effects of tighter monetary policy and broader economic uncertainty. Economists will closely monitor upcoming employment reports to assess whether these trends signal a more sustained slowdown.
The US dollar is set to end the week lower despite strong June jobs data (147K jobs, 4.1% unemployment) as fiscal and trade uncertainties weighed on sentiment. The euro stayed just below $1.18, supported by optimism around ECB policy and cautious EU stance before US tariff decisions. The pound held steady after PM Starmer backed Chancellor Reeves, with markets still expecting a BoE cut in August. The yen is on track for weekly gains, supported by strong household spending data and a softer dollar amid trade uncertainty.
Detail US Jobs Data Supports Fed Dovish Tone (04.07.2025)The US dollar held steady after June’s NFP report showed 147,000 new jobs, easing recession fears while supporting calls for future Fed cuts due to slowing private hiring. EUR/USD remained near 1.1760 in quiet holiday trading, while the yen hovered around 145 amid tariff uncertainty.
The latest data suggests that while the U.S. labor market remains resilient, there are emerging signs of softening.
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