That’s the new data we got recently from the United States Department of Labor (DOL). For the week ending May 31, initial jobless claims jumped to 247,000, a rise of 8,000 from the previous week’s revised level of 239,000. This increase is greater than what the market expected, with a consensus of 235,000 claims total. The snapshot, released on Thursday, underscores a tenuous and still-recovering labor market in an otherwise uncertain economic picture.
Moreover, the DOL reported that the advance seasonally adjusted insured unemployment rate held steady at 1.2%. This visual represents a small drop in the advance number for seasonally adjusted insured unemployment for the week prior. It actually posted 1,904,000 claims, which is a decline of 3,000 from the revised level of last week.
As analysts processed the ramifications of this information, the US Dollar Index took a hit, sinking below 99 to test 98.50. As of this writing, the broadly based index was dinged down by 0.2% on the day, at 98.62. The market’s reaction to the jobless claims figures underscores concerns about the broader economic landscape and its potential impact on currency performance.
Now jobless claims are reportedly surging. That is a sign that the labor market is beginning to crack under the pressure as firms face an increasingly uncertain economic outlook. This upward trend is especially important in light of the fact that these new, initial claims had recently reached a point of stabilization. That upward revision of last week’s figures reflects a more cautious approach from employers.
“The advance number for seasonally adjusted insured unemployment during the week ending May 24 was 1,904,000, a decrease of 3,000 from the previous week’s revised level.” – United States Department of Labor (DOL)
Jobless claims have begun a consistent upward trend. This trend should encourage policymakers to step in or shift gears to stimulate greater job creation and fuel stronger economic confidence.