Labor pains: Jobless filings hit high

Initial filings for unemployment benefits in the US climbed to their highest level since August 2023 — a sign that the robust American labor market is cooling.

Initial jobless claims increased by 22,000 to 231,000 in the week ended May 4, according to Labor Department data released Thursday — blowing past Bloomberg economists’ expectations of 212,000.

The four-week moving average, which helps smooth out weekly volatility in numbers, increased to 215,000 — up 4,750 from the previous week and the highest since February.

Until this week, first-time applications hadn’t topped the narrow 200,000-to222,000 range in the past three months, according to Bloomberg.

The latest reading, however, indicates that the number of layoffs across US employers ticked higher.

The latest jobless claims data come after last month’s jobs report came in weaker than expected, adding just 175,000 new roles in April — short of the 240,000 analysts were expecting and renewing hopes for an interest rate cut from the Fed.

A month earlier, March had experienced an impressive 303,000 gains.

Before adjustment for seasonal influences, initial applications rose by nearly 20,000, to 209,324, which the Labor Department said was because of a jump in jobless claims in New York, where upwards of 10,000 claims contributed to more than half of the latest hike.

Claims also picked up in California, where many hourly workers were cut after the state implemented a $20 minimum wage rule for fast-food workers on April 1.