The numbers: Initial jobless claims surged by 13,000 — to 242,000 — in the week ending June 8, the Labor Department said Thursday. That’s the highest level of claims since last August.
Economists polled by The Wall Street Journal had estimated new claims would fall to 225,000.
Last week claims were unrevised as a rise of 8,000 to 229,000.
The U.S. unemployment rate drifted to 4% in May, the highest level since 2022.
Key details: The four-week moving average of claims rose by 5,000 to 227,000, the highest level since last September.
The number of people already collecting jobless benefits in the week ended June 1 rose by 30,000 to 1.82 million.
On an unadjusted basis, claims rose 38,530 to 234,707 in the latest week.
Big picture: The labor market is no longer overheated, Federal Reserve Chair Jerome Powell said Wednesday.
Treasury Secretary Janet Yellen agreed with Powell’s assessment in an interview Thursday. She said the labor market was no longer boosting inflation.
“The labor market is now resembling what it looked like pre-pandemic,” Yellen said in an interview on CNBC.
Looking ahead: Economists said they would be watching this upward trend closely to see if it persists. For now, there was a sense that it might be overstated.
Stuart Hoffman, senior economic advisor to PNC Financial Services, said the rise could be a sign of growing layoffs if it keeps rising through June.
