Jobless claims unexpectedly surged higher last week, rising by 14,000 to nearly a one year high of 249,000.
This was higher than even the most pessimistic forecasts in Econoday’s survey and far above the consensus estimate of 236,000.
The number of people collecting unemployment benefits beyond their initial week increased by 33,000 to 1.88 million. This is the highest number of continuing claims since 2021, when the economy was still staggering from the pandemic. The rise continuing claims indicates that Americans who have lost their jobs are having more trouble finding new work.
The biggest increase in new claims was in Michigan. Texas, which was hit by a hurricane recently, saw a sizeable increase that might be temporary.
The Federal Reserve said this week that the risks of labor market weakening were roughly balanced now with the risks of rising inflation.