Initial weekly jobless claims rise to highest since August

Weekly initial U.S. unemployment claims shot up Wednesday, reaching the greatest total since August.

First-time filings for the week ending May 4 were 231,000, a 22,000 increase from the previous week.

Initial claims were higher than Dow Jones economists expected. Their estimate was 214,000.

However, continuing unemployment claims dropped by 59,066.

The Department of Labor said in a statement Wednesday that the total number of continuing unemployment claims fell from the previous week and was lower than the comparable week in 2023.

“The total number of continued weeks claimed for benefits in all programs for the week ending April 20 was 1,778,454, a decrease of 59,066 from the previous week,” the DOL said. “There were 1,715,365 weekly claims filed for benefits in all programs in the comparable week in 2023.”

This week’s jobless claims total comes after a series of strong jobs reports.

In April, however, job creation was weaker than expected.

Last week’s first-time unemployment claims number of 208,000 was revised up to 209,000. That was the fewest number of jobless claims since February 17.

“One week does not a trend make, but we can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication,” said FWDBONDS chief economist Christopher Buckley.

According to the Labor Department, the biggest increases in this week’s initial unemployment claims “were in Iowa (+1,452), Illinois (+1,227), New Hampshire (+488), Ohio (+340), and Michigan (+330).”

Initial claims dropped in California (-5,083), Massachusetts (-3,306), Oregon (-1,729), Rhode Island (-1,626), and Connecticut (-1,409).