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

ICE raids meat production plant in Omaha, dozens detained
ICE raids meat production plant in Omaha, dozens detained

USA Today

time16 minutes ago

  • USA Today

ICE raids meat production plant in Omaha, dozens detained

ICE raids meat production plant in Omaha, dozens detained WASHINGTON, June 10 (Reuters) - An immigration raid on Tuesday at a meat production plant in Omaha, Nebraska was the "largest worksite enforcement operation" in the state during the Trump presidency, the Homeland Security Department said. U.S. Congressman Don Bacon told local media 75-80 people were detained. The U.S. Immigration and Customs Enforcement raid happened at a plant of Glenn Valley Foods. The food packaging company said it was surprised by the raid and had followed the rules regarding immigration status. Chad Hartmann, president of Glenn Valley Foods in Omaha, said the plant that was raided used E-Verify, a federal database used for checking employees' immigration status. He told Reuters that when he said this to a federal agent, the agent responded "the system is broken" and urged him to contact his local congressional representative. ICE officers have been intensifying efforts in recent weeks to deliver on U.S. President Donald Trump's promise of record-level deportations. The White House has demanded the agency sharply increase arrests of migrants in the U.S. illegally, sources have told Reuters. More: Curfew enacted for parts of LA; Newsom says Trump chose 'theatrics over public safety' Tensions boiled over in Los Angeles over the weekend when protesters took to the streets after ICE arrested migrants at Home Depot stores, a garment factory and a warehouse, according to migrant advocates. Local police in Omaha said they were informed by immigration officials about the raid in advance while the company said it got no notice about the operation ahead of time. Hartmann said federal agents had a warrant that said they had identified 107 people who they believed were using fraudulent documents. "This was the largest worksite enforcement operation in Nebraska under the Trump Administration," the Homeland Security Department said on X, adding no law enforcement official was hurt. ICE said a criminal investigation was ongoing into what immigration officials called a large-scale employment of immigrants who are present in the U.S. illegally. More: In LA's Paramount neighborhood ICE raids hit hard. Here's why. "U.S. Immigration and Customs Enforcement, and federal law enforcement partners, executed a federal search warrant at Glenn Valley Foods, today, based on an ongoing criminal investigation into the large-scale employment of aliens without authorization to work in the United States," an ICE spokesperson told an ABC News affiliate. More than half of all meatpacking workers in the U.S. are immigrants, according to the Center for Economic and Policy Research, a think tank. Rights advocates, including the ACLU of Nebraska, condemned the raid. (Reporting by Kanishka Singh in Washington and Kristina Cooke in San Francisco; Editing by Michael Perry)

Musk regrets some of his Trump criticisms, says they 'went too far'
Musk regrets some of his Trump criticisms, says they 'went too far'

Yahoo

time16 minutes ago

  • Yahoo

Musk regrets some of his Trump criticisms, says they 'went too far'

Elon Musk, the world's richest person and Donald Trump's former advisor, said Wednesday he regretted some of his recent criticisms of the US president, after the pair's public falling-out last week. "I regret some of my posts about President @realDonaldTrump last week. They went too far," Musk wrote on his social media platform X. Musk's expression of regret came just days after Trump threatened the tech billionaire with "serious consequences" if he sought to punish Republicans who vote for a controversial spending bill. Their blistering break-up -- largely carried out on social media before a riveted public since Thursday last week -- was ignited by Musk's harsh criticism of Trump's so-called "big, beautiful" spending bill, which is currently before Congress. Some lawmakers who were against the bill had called on Musk -- one of the Republican Party's biggest financial backers in last year's presidential election -- to fund primary challenges against Republicans who voted for the legislation. "He'll have to pay very serious consequences if he does that," Trump, who also branded Musk "disrespectful," told NBC News on Saturday, without specifying what those consequences would be. Trump also said he had "no" desire to repair his relationship with the South African-born Tesla and SpaceX chief, and that he has "no intention of speaking to him." In his post on Wednesday, Musk did not specify which of his criticisms of Trump had gone "too far." - 'Wish him well' - The former allies had seemed to have cut ties amicably about two weeks ago, with Trump giving Musk a glowing send-off as he left his cost-cutting role at the so-called Department of Government Efficiency (DOGE). But their relationship cracked within days as Musk described the spending bill as an "abomination" that, if passed by Congress, could define Trump's second term in office. Trump hit back at Musk's comments in an Oval Office diatribe and from there the row detonated, leaving Washington stunned. "Look, Elon and I had a great relationship. I don't know if we will anymore. I was surprised," Trump told reporters. Musk, who was Trump's biggest donor to his 2024 campaign, also raised the issue of the Republican's election win. "Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate," he posted, adding: "Such ingratitude." Trump later said on his Truth Social platform that cutting billions of dollars in subsidies and contracts to Musk's companies would be the "easiest way" to save the US government money. US media have put the value of the contracts at $18 billion. With real political and economic risks to their falling out, both appeared to inch back from the brink on Friday, with Trump telling reporters "I just wish him well," and Musk responding on X: "Likewise." Trump had spoken to NBC on Saturday after Musk deleted one of the explosive allegations he had made during their fallout, linking the president with disgraced financier Jeffrey Epstein. Musk had alleged that the Republican president is featured in unreleased government files on former associates of Epstein, who died by suicide in 2019 while he faced sex trafficking charges. Trump was named in a trove of deposition and statements linked to Epstein that were unsealed by a New York judge in early 2024. The president has not been accused of any wrongdoing in the case. "Time to drop the really big bomb: (Trump) is in the Epstein files," Musk posted on X. "That is the real reason they have not been made public." Musk did not reveal which files he was talking about and offered no evidence for his claim. He appeared to have deleted those tweets by Saturday morning. bur-sco/dhc

Sudanese army retreats from Libyan border after alleging Haftar attack
Sudanese army retreats from Libyan border after alleging Haftar attack

Yahoo

time16 minutes ago

  • Yahoo

Sudanese army retreats from Libyan border after alleging Haftar attack

DUBAI (Reuters) -The Sudanese army retreated from the Libya-Egypt-Sudan border triangle area, it said on Wednesday, a day after it accused forces loyal to eastern Libyan military commander Khalifa Haftar of an attack alongside the paramilitary Rapid Support Forces. Sudanese soldiers, largely from former rebel groups aligned with the army, had patrolled the area. Sudan's military, which is fighting against the RSF in a civil war, accuses the RSF and Haftar's forces of using the corridor for weapons deliveries. The area is close to the city of al-Fashir, one of the war's main frontlines. "As part of its defensive arrangements to repel aggression, our forces today evacuated the triangle area," the Sudanese army said in a statement without elaborating. Late on Tuesday, Haftar's forces had denied participating in a cross-border attack, saying forces allied to the Sudanese army had attacked Libyan patrols. Sudan accuses the United Arab Emirates, one of Haftar's backers, of being behind the weapons deliveries, which the UAE denies. Egypt, a close ally of the Sudanese army, also backs Haftar.

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