US jobless claims hit nine-month high

9th May 2024 11:48

(Sharecast News) - Americans lined up for unemployment benefits at an accelerated clip in the week ended 4 May, according to the Department of Labor, hitting a nine-month high in the process.

Initial jobless claims rose by 22,000 to 231,000, the highest since August 2023, above market expectations for a reading of 210,000, and halting a streak of four consecutive downside surprises to point to a sharp and sudden breakthrough of weakness in the labour market.

The four-week moving average for initial claims, which aims to strip out week-to-week volatility, jumped by 4,750 to 215,000, while continuing claims increased by 17,000 to 1.78m

On a non-seasonally adjusted basis, claims rose by 19,690 to 209,324, with sharp increases noted in New York, California, Indiana, and Illinois.

Reporting by Iain Gilbert at Sharecast.com