A report released by the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits rose by more than expected in the week ended June 4th.
The Labor Department said initial jobless claims climbed to 229,000, an increase of 27,000 from the previous week’s revised level of 202,000.
Economists had expected jobless claims to rise to 210,000 from the 200,000 originally reported for the previous week.
With the bigger than expected increase, jobless claims reached their highest level since hitting 240,000 in the week ended January 15th.
The report showed the less volatile four-week moving average also edged up to 215,000, an increase of 8,000 from the previous week’s revised average of 207,000.
Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, came in a 1.306 million in the week ended May 28th, unchanged from the previous week’s revised level.
The four-week moving average of continuing claims dropped to a new 52-year low of 1,317,500, a decrease of 9,000 from the previous week’s revised average of 1,326,500.
Last Friday, a separate report from the Labor Department showed job growth in the U.S. exceeded economist estimates in the month of May.
The report showed non-farm payroll employment jumped by 390,000 jobs in May after surging by an upwardly revised 436,000 jobs in April.
Economists had expected employment to increase by about 325,000 jobs compared to the addition of 428,000 jobs originally reported for the previous month.
Meanwhile, the Labor Department said the unemployment rate remained unchanged at 3.6 percent. The unemployment rate was expected to edge down to 3.5 percent.
Source: Read Full Article