The number of people filing new claims for unemployment benefits rose last week, with layoffs surging to a 16-month high in June.
According to the Labor Department initial filings totaled 235,000 for the week ended July 2, this is 4,000 more from than the previous period. Dow Jones estimated 230,000 new fillings and the total was the highest since Jan. 15.
Continuing unemployment claims also rose 51,000 to 1.375 million, this is slightly higher than the 1.337 million estimates.
Unadjusted claims increased 11,919 to 219,507 last week. Economists polled by Reuters had forecast 230,000 applications for the latest week.
The total number of Americans collecting jobless benefits for the week ending June 25 rose by 51,000 from the previous week, to 1,375,000. That figure has been nearing 50-year lows for months.
On Wednesday, the Labor Department reported that U.S. employers offered less jobs in May amid signs that the economy is weakening.
Markets are expecting Friday’s nonfarm payrolls report. If the Dow Jones estimate of a 250,000 gain is accurate, it will be the lowest monthly increase since December 2020.
U.S. stock indexes rose as the number of Americans applying for jobless benefits inched higher and investors bet on a larger interest-rate increase from the Federal Reserve this month.