US jobless claims filings highest since 2021, but job market remains healthy

Applications for unemployment benefits for the week ending May 6 rose by 22,000 to 264,000, the Labor Department reported Thursday.

Associated Press

May 11, 2023, 1:09 PM

Updated 372 days ago

Share:

US jobless claims filings highest since 2021, but job market remains healthy
The number of Americans filing for jobless claims last week rose to its highest level in a year-and-a-half, though the labor market remains healthy by historical standards.
Applications for unemployment benefits for the week ending May 6 rose by 22,000 to 264,000, the Labor Department reported Thursday. That's up from the previous week's 242,000 and the highest since November of 2021. The weekly claims numbers are seen as representative of the number of U.S. layoffs.
The four-week moving average of claims, which evens out some of the weekly volatility, rose by 6,000 to 245,250.
For the week of April 29, the total number of Americans collecting unemployment benefits rose by 12,000 from the previous week to 1.81 million.
American workers are enjoying unusual job security despite rising interest rates, economic uncertainty and fears of a looming recession.
U.S. employers added a healthy 253,000 jobs in April, evidence of a labor market still showing surprising resilience. The unemployment rate dipped to 3.4%, matching a 54-year low.
However, while hiring was solid in April, it was much weaker in February and March than it had previously estimated. Job gains for those months was lowered by a combined 149,000 jobs, a possible sign that rising interest rates are starting to infect the labor market.
Last week, the Fed raised its benchmark interest rate another quarter point. One of the Fed’s goals in raising interest 10 times in the past 14 months is to cool the job market and stifle rising wages. Until very recently, there was very little evidence the central bank’s actions were working on the labor market.
The government also recently reported that U.S. job openings fell in March to the lowest level in nearly two years.
The Fed is hoping to achieve a soft landing - lowering growth just enough to bring inflation under control without causing a recession. Economists are skeptical, with many expecting the U.S. to enter a recession later this year.
Last week, the Commerce Department reported that U.S. economy slowed sharply from January through March as higher interest rates hammered the housing market and businesses reduced inventories.
There have been an increasing number of layoffs recently, mostly in the technology sector, where companies added jobs at a furious pace during the pandemic. IBM, Microsoft, Salesforce, Twitter, Lyft and DoorDash have all announced layoffs in recent months. Amazon and Facebook have each announced two sets of job cuts since November.
But it’s not just the tech sector that’s trimming staff. McDonald’s, Morgan Stanley and 3M also announced layoffs recently.


More from News 12
1:53
Hudson Valley unites to help Ukraine, continues local efforts to help war-torn country

Hudson Valley unites to help Ukraine, continues local efforts to help war-torn country

1:47
Mostly cloudy, chance for scattered afternoon showers for Saturday in the Hudson Valley

Mostly cloudy, chance for scattered afternoon showers for Saturday in the Hudson Valley

0:20
Police: Spikes deployed by officers to stop car during pursuit in Town of Bedford

Police: Spikes deployed by officers to stop car during pursuit in Town of Bedford

0:30
Yorktown Grange Fair to celebrate its 100th anniversary this September

Yorktown Grange Fair to celebrate its 100th anniversary this September

1:48
City of Mount Vernon celebrates and reflects 70 years since landmark Brown v. Board of Ed decision

City of Mount Vernon celebrates and reflects 70 years since landmark Brown v. Board of Ed decision

0:27
Man arrested for hate crime at Kingston synagogue

Man arrested for hate crime at Kingston synagogue

0:31
Westchester County DA: Peekskill man pleads guilty to gunning down man in front of his children

Westchester County DA: Peekskill man pleads guilty to gunning down man in front of his children

0:47
Two Middletown state troopers honored for heroism

Two Middletown state troopers honored for heroism

1:44
Caught on camera: Person seen taking down Israeli flag from Rockland County business

Caught on camera: Person seen taking down Israeli flag from Rockland County business

0:59
Man who allegedly set Warwick home of trooper’s family on fire indicted for attempted murder

Man who allegedly set Warwick home of trooper’s family on fire indicted for attempted murder

1:31
DEC tranquilizes, safely relocates bear in Poughkeepsie neighborhood

DEC tranquilizes, safely relocates bear in Poughkeepsie neighborhood

1:45
Transfiguration School set to close with little notice, leaving parents scrambling to find new schools

Transfiguration School set to close with little notice, leaving parents scrambling to find new schools

0:50
New firefighter training center opens in Pomona

New firefighter training center opens in Pomona

0:53
29th annual Today's Students Tomorrow's Teachers brunch celebrates future educators

29th annual Today's Students Tomorrow's Teachers brunch celebrates future educators

0:19
Playland Park's Gondola Wheel closed due to active Osprey nesting

Playland Park's Gondola Wheel closed due to active Osprey nesting

0:35
Ossining family awarded over $23 million for medical malpractice lawsuit against Westchester Medical Center

Ossining family awarded over $23 million for medical malpractice lawsuit against Westchester Medical Center

1:04
Royal Regency Hotel in Yonkers celebrates 30 years of business

Royal Regency Hotel in Yonkers celebrates 30 years of business

0:41
Lakeland Central School District joins search for 2 missing Westchester teens

Lakeland Central School District joins search for 2 missing Westchester teens

0:23
New York Rangers beat Carolina Hurricanes 5-3 to advance to Eastern Conference Final

New York Rangers beat Carolina Hurricanes 5-3 to advance to Eastern Conference Final

0:52
New image released of missing Westchester County teens

New image released of missing Westchester County teens