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Fewer Americans apply for jobless benefits, labor market still showing strength

Fewer Americans applied for jobless benefits last week following a spike the previous week that some saw as a sign that higher interest rates were finally hobbling the labor market

Matt Ott
Thursday 18 May 2023 13:41 BST
Unemployment Benefits
Unemployment Benefits (Copyright 2023 The Associated Press. All rights reserved.)

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Fewer Americans applied for jobless benefits last week after a previous spike that some took as a sign that higher interest rates were finally cooling the labor market.

Applications for jobless claims for the week ending May 6 fell by 22,000 to 242,000, from 264,000 the week before, the Labor Department reported Thursday. The weekly claims numbers are broadly as representative of the number of U.S. layoffs.

The four-week moving average of claims, which flattens some of the week-to-week fluctuations, ticked down by 1,000 to 244,250. Analysts have pointed to a sustained increase in the four-week averages as a sign that layoffs are accelerating, but are reluctant to predict that a spike in layoffs is imminent.

Overall, 1.8 million people were collecting unemployment benefits the week that ended April 29, about 8,000 fewer than the previous week.

Since the pandemic purge of millions of jobs three years ago, the U.S. economy has added jobs at a breakneck pace and Americans have enjoyed unusual job security. That's despite interest rates that have been rising for more than a year and fears of a looming recession.

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