New US unemployment claims rose to their highest level since February, adding to concerns about economic headwinds from inflation, higher rates and conflict.
Applications for US unemployment benefits rose more than expected last week, signalling some softening in the labour market even as hiring remains resilient amid economic uncertainty.
Initial jobless claims increased by 4,000 to 229,000 in the week ended June 6, according to data released by the US Labor Department on Thursday. The figure was higher than the 216,000 claims forecast by economists surveyed by FactSet and marked the highest level since early February, according to AP.
The increase comes as the US economy faces headwinds from rising inflation, elevated interest rates and uncertainty linked to the ongoing conflict involving Iran.
Despite the uptick in jobless claims, broader labour market indicators continue to point to underlying strength. Data released by the Labor Department last week showed that US employers added 172,000 jobs in May, although that was slightly lower than April’s revised gain of 179,000 jobs. The unemployment rate remained unchanged at 4.3%.
The US job market has gradually stabilised this year following a weak 2025 and has so far remained resilient despite higher energy costs and growing geopolitical uncertainty.
Hiring has averaged about 76,000 jobs per month between January and April, reflecting a rebound from last year’s slowdown. Economists have also pointed to the boost from tax refunds stemming from President Donald Trump’s 2025 tax cuts, which helped support consumer spending and offset some of the impact of higher fuel prices.
However, that support may begin to fade as most refunds have already been spent or saved, while gasoline prices remain above $4 per gallon, adding pressure on household budgets.
The latest claims data will be closely watched for signs of whether employers are becoming more cautious amid rising costs and an increasingly uncertain economic outlook.
