US Weekly Jobless Claims Reach Highest Since August 2023

A hiring sign is displayed in Downers Grove, Ill., on June 24, 2021. Nam Y. Huh/AP Photo

The number of Americans filing new claims for unemployment benefits recently reached its highest level since August 2023, according to data published by the Bureau of Labor Statistics (BLS) on May 9.

First-time applications for unemployment benefits for the week that ended on May 4 soared by 22,000 to 231,000—up from 209,000 the week prior—according to the data, marking the highest level in eight months.

The last time that the number of applications reached that figure was the week that ended on Aug. 26, 2023, when 234,000 Americans filed for unemployment.

The four-week moving average of claims, which smooths out some of the weekly volatility, increased by 4,750 to 215,000, marking the highest level since February, according to the data.

Excluding an adjustment for seasonal influences, claims totaled 209,324, up by 10.4 percent from the previous week, according to the data.

The Labor Department stated that was because of a rise in jobless claims in New York state, where 10,248 claims contributed to more than half of the latest total rise.

New York, California See Rise in Jobless Applications

Claims also rose in California, where about 4,200 new jobless applications were filed for the week that ended on May 4. That increase came after the state’s $20 minimum wage law for fast food workers went into effect last month.

Indiana and Illinois both had sizeable gains in new filings, at 2,439 and 2,003, respectively, while Texas saw an increase of 1,186 in new applications, the data show.

In total, 1.79 million Americans were collecting unemployment benefits during the week that ended on April 27. That marks an increase of 17,000 from the prior week, according to BLS statistics.

The latest jobless claims data come after April’s jobs report showed that the U.S. economy added 175,000 new jobs in April, down from the upwardly revised 315,000 positions in March.

The report fell short of the 243,000 jobs expected by analysts, renewing hopes that the Federal Reserve might finally cut interest rates. Markets widely anticipate that the U.S. Federal Reserve will start lowering interest rates in September.

According to April’s report, the unemployment rate also ticked up to 3.9 percent last month, up from 3.8 percent and higher than the market forecast, although it still marked the 27th consecutive month that the jobless rate held below 4 percent. Before April, March saw an impressive gain of 315,000 jobs, while the February report was adjusted down by 34,000 to 236,000 jobs.

Tech, Media Layoffs Continue

While the May 9 Bureau of Labor Statistics data did not state which industries saw the most unemployment applications, multiple companies—predominantly those in the technology and media industries—have announced cuts to their global workforces in recent months.

The companies include Amazon, Apple, eBay, Sony, and Snapchat.

Outside of the tech industry, fitness firm Peloton, automotive manufacturing company Stellantis, and footwear and apparel maker Nike have also unveiled cuts.

In April, Elon Musk’s Tesla revealed that it was slashing more than 3,300 workers in California and more than 2,600 workers in Texas after reporting a 9 percent drop in revenue.

The latest data come as Federal Reserve officials are closely monitoring the jobs numbers as they continue to work toward bringing inflation back down to 2 percent.

Earlier this month, Fed policymakers decided to hold interest rates at a 23-year high range of 5.25 percent to 5.50 percent amid data suggesting that inflation was easing at a slower pace than they had initially hoped.

The Associated Press contributed to this report.