logo
US weekly jobless claims rise more than expected as labor market eases

US weekly jobless claims rise more than expected as labor market eases

Yahoo29-05-2025

WASHINGTON (Reuters) -The number of Americans filing new applications for unemployment benefits increased more than expected last week, while the jobless rate appeared to have picked up in May as labor market conditions continue to ease.
Initial claims for state unemployment benefits rose 14,000 to a seasonally adjusted 240,000 for the week ended May 24, the Labor Department said on Thursday. Economists polled by Reuters had forecast 230,000 claims for the latest week.
Worker hoarding by employers following difficulties finding labor during and after the COVID-19 pandemic is underpinning the jobs market. Nonetheless there has been an uptick in layoffs because of economic uncertainty as President Donald Trump pursues an aggressive trade policy, which economists say is making it challenging for businesses to plan ahead.
A U.S. trade court on Wednesday blocked most of Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority. Economists said the ruling, while it offered some relief, had added another layer of uncertainty over the economy.
A report from the Bank of America Institute noted a sharp rise in higher-income households receiving unemployment benefits between February and April compared to the same period last year. Its analysis of Bank of America deposit accounts also showed notable rises among lower-income as well as middle-income households in April from the same period a year ago.
Economists expect claims in June to break above their 205,000-243,000 range for this year, mostly driven by difficulties adjusting the data for seasonal fluctuations, following a similar pattern in recent years. That would not suggest a material shift in labor market conditions
Minutes of the Federal Reserve's May 6-7 policy meeting published on Wednesday showed while policymakers continued to view labor market conditions as broadly in balance, they "assessed that there was a risk that the labor market would weaken in coming months."
They noted that there was "considerable uncertainty" over the job market's outlook, adding "outcomes would depend importantly on the evolution of trade policy as well as other government policies."
The U.S. central bank has kept its benchmark overnight interest rate in the 4.25%-4.50% range since December as officials struggle to estimate the impact of Trump's tariffs, which have raised the prospect of higher inflation and slower economic growth this year.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 26,000 to a seasonally adjusted 1.919 million during the week ending May 17, the claims report showed. The elevated so-called continuing claims reflect companies' hesitance to increase headcount because of the economic uncertainty.
Continuing claims covered the period during which the government surveyed households for May's unemployment rate. The jobless rate was at 4.2% in April.
Many people who have lost their jobs are experiencing long spells of unemployment. The median duration of unemployment jumped to 10.4 weeks in April from 9.8 weeks in March.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Israeli navy attacks rebel-held Yemeni port city of Hodeida
Israeli navy attacks rebel-held Yemeni port city of Hodeida

Yahoo

time35 minutes ago

  • Yahoo

Israeli navy attacks rebel-held Yemeni port city of Hodeida

DUBAI, United Arab Emirates — The Israeli navy attacked docks in Yemen's rebel-held port city of Hodeida on Tuesday, likely damaging facilities that are key to aid shipments to the hungry, war-wracked nation. The Israeli military said navy missile ships conducted the strikes, the first time its forces have been involved in attacks against the Houthi rebels. Tuesday's attack comes as the Houthis have repeatedly launched missiles and drones targeting Israel during its war on Hamas in the Gaza Strip. The Houthis announced the attack via their al-Masirah satellite news channel. They said the attack targeted docks there, without elaborating. Late Monday, Israel issued online warnings to Yemenis to evacuate from Ras Isa, Hodeida and al-Salif ports over the Houthis' alleged use of seaports for attacks. 'The port is used to transfer weapons and is a further example of the Houthi terrorist regime's cynical exploitation of civilian infrastructure in order to advance terrorist activities,' the Israeli military said in a statement Tuesday. Hodeida also is the main entry point for food and other humanitarian aid for millions of Yemenis since the war began when the Houthis seized Yemen's capital, Sanaa, in 2014. The Houthis have been launching persistent missile and drone attacks against commercial and military ships in the region in what the group's leadership has described as an effort to end Israel's offensive in Gaza. From November 2023 until January 2025, the Houthis targeted more than 100 merchant vessels with missiles and drones, sinking two of them and killing four sailors. That has greatly reduced the flow of trade through the Red Sea corridor, which typically sees $1 trillion of goods move through it annually. The Houthis paused attacks in a self-imposed ceasefire until the U.S. launched a broad assault against the rebels in mid-March. President Donald Trump paused those attacks just before his trip to the Mideast, saying the rebels had 'capitulated' to American demands. Early Tuesday, U.S. Secretary of Defense Pete Hegseth wrote on the social platform X that U.S. Navy ships had traveled through the Red Sea and its Bab el-Mandeb Strait 'multiple times in recent days' without facing Houthi attacks. 'These transits occurred without challenge and demonstrate the success of both Operation ROUGH RIDER and the President's Peace Through Strength agenda,' Hegseth wrote ahead of facing Congress for the first time since sharing sensitive military details of America's military campaign against the Houthis in a Signal chat. It's unclear how the Houthis will respond now that an attack has come from the sea, rather than the air, from the Israelis. Meanwhile, a wider, decadelong war in Yemen between the Houthis and the country's exiled government, backed by a Saudi-led coalition, remains in a stalemate.

Donald Trump Reveals What's Next For That Tesla He Bought From Elon Musk
Donald Trump Reveals What's Next For That Tesla He Bought From Elon Musk

Yahoo

time35 minutes ago

  • Yahoo

Donald Trump Reveals What's Next For That Tesla He Bought From Elon Musk

Donald Trump on Monday addressed a question that's been on many people's minds ever since the president's spectacular blow-out with former so-called 'First Buddy' Elon Musk last week. Namely, what will happen to the red Tesla model S that Trump bought during a White House event in March to promote Musk's electric vehicle brand amid backlash to the billionaire's now-ended role leading the public spending-slashing, unofficial Department of Government Efficiency. 'Are you going to get rid of the Tesla and the Starlink system that you have here at the White House?' Trump was asked by a reporter. 'No, I haven't heard that,' the president replied. 'I mean, I may move the Tesla around a little bit but I don't think we'll be doing that with Starlink, it's a good service,' he added, the latter being Musk's satellite internet service. The journalist pressed Trump on the Tesla: 'Where are you going to move it to? Move it around? What do you mean?' Trump replied: 'I have a lot of locations. I've got so many locations I don't know what to do with them all.' Watch the exchange here: Earlier this month, a White House official had claimed that Trump would sell or give away the car. Karoline Leavitt Squirms Over Maria Bartiromo's Blunt Question About Elon Musk Trump Accused Of Inciting Violence With Chilling New Rhyme Mike Johnson Offers Bizarre Justification For ICE Masks. Backlash Follows. George Clooney Reveals The 1 Line He Used To Silence Protesters During Broadway Play

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store