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Applications for jobless benefits highest since October 2021

by The Associated Press | June 9, 2023 at 4:00 a.m.
FILE - A hiring sign is displayed at a restaurant in Prospect Heights, Ill., on April 4, 2023. The hot jobs market has been defying a weakening economy and confounding the Federal Reserve for months, but now shows signs of cooling. The latest set of employment data from the government shows that job openings fell in March to their lowest level since April 2021. Layoffs rose to 1.8 million, their highest level since December 2020. (AP Photo/Nam Y. Huh, File)

The number of Americans applying for unemployment benefits last week rose to its highest level since October 2021, but the labor market remains one of the healthiest parts of the U.S. economy.

The Labor Department reported Thursday that U.S. applications for jobless claims were 261,000 for the week ending June 3, an increase of 28,000 from the previous week's 233,000. Weekly jobless claims are considered representative of U.S. layoffs.

The four-week moving average of claims, which evens out some of the weekly variations, rose by 7,500 to 237,250.

Despite last week's sharp increase in filings for unemployment aid, some analysts cautioned against concluding that layoffs are picking up across the economy. They noted the weekly figures are prone to revision and that last week's numbers might have been distorted by the three-day Memorial Day weekend.

"The latest reading reflects a holiday-shortened week (Memorial Day), which ought to raise suspicions that the big move was more noise than signal," said Stephen Stanley, chief U.S. economist for Santander. "I am eager to see next week's reading before I draw any conclusions."

The U.S. economy has added jobs at a furious rate since the pandemic purge of more than 20 million jobs in the spring of 2020. Americans have enjoyed unusual job security, despite the Federal Reserve's aggressive campaign to cool the economy and labor market in its bid to stifle persistent, decades-high inflation.

Though the labor market remains strong, there have been notable high-profile layoffs recently, mostly in the technology sector, where many companies now acknowledge overhiring during the pandemic. IBM, Microsoft, Salesforce, Twitter, Lyft, LinkedIn, Spotify and DoorDash have all announced layoffs in recent months. Amazon and Facebook parent Meta have each announced two sets of job cuts since November.

Outside the tech sector, McDonald's, Morgan Stanley and 3M also recently announced layoffs.

Overall, 1.76 million people were collecting unemployment benefits the week that ended May 27, about 37,000 fewer than the previous week.

Print Headline: Applications for jobless benefits highest since October 2021


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