US jobless claims come in ahead of expectations

6th Jun 2024 12:40

(Sharecast News) - Americans lined up for unemployment benefits at an accelerated clip in the week ended 1 June, according to the Department of Labor.

Initial jobless claims jumped by 8,000 to 229,000, well above market expectations for a reading of 220,000 and the highest reading seen since the eight-month high of 232,000 back in early May. The previous week's level was revised up by 2,000 from 219,000 to 221,000.

Continuing claims unexpectedly rose by 2,000 to 1.79m, the highest in seven weeks, while the four-week moving average, which aims to strip out week-to-week volatility, was up 2,750 at 1.78m.

The results provide further evidence of a softening US labour market, bolstering the argument that the Federal Reserve should deliver multiple interest rate cuts before the year is out should inflation show some progress in reaching the central bank's 2% target.

Reporting by Iain Gilbert at Sharecast.com