First-time applications for unemployment benefits reached their highest level since August, indicating that the once-hot labor market is starting to slow down.
There were 231,000 first-time applications last week, as well as 1.78 million claims from people who have previously filed for unemployment for at least one week—an increase of 17,000 from the previous week, according to the Bureau of Labor Statistics.
The monthly jobs report released last week showed that 175,000 positions were added in April, lower than what economists predicted and a decline from previous months. Companies are also now adding 245,500 jobs on average each month, a drop from last year’s 251,000 per month.
Just one week of data doesn’t indicate a trend, said Chris Rupkey, chief economist at Fwdbonds. However, “we can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
