The number of Americans claiming unemployment benefits rose by 14,000 to 240,000 for the week ending May 24, according to the data released by the US Department of Labour.Reports suggest that the increase can be attributed largely to seasonal factors such as Memorial Day holiday and the end of school year.
The number of workers receiving unemployment insurance benefits increased 26,000 to a seasonally adjusted 1.9 million. This is the highest level for insured unemployment since November 2021 when it was 1.97 million, according to the official update.
The higher than expected jobless claims numbers surprised the Street, especially since Federal Reserve Chair Jerome Powell earlier this month described the labour market conditions as “solid,”.On May 7, the US Federal Reserve kept its key interest rate unchanged at 4.3%, and Powell brushing off concerns around tariffs leading to increased unemployment, said the labor market remains strong.
The number of workers receiving unemployment insurance benefits increased 26,000 to a seasonally adjusted 1.9 million. This is the highest level for insured unemployment since November 2021 when it was 1.97 million, according to the official update.
The higher than expected jobless claims numbers surprised the Street, especially since Federal Reserve Chair Jerome Powell earlier this month described the labour market conditions as “solid,”.On May 7, the US Federal Reserve kept its key interest rate unchanged at 4.3%, and Powell brushing off concerns around tariffs leading to increased unemployment, said the labor market remains strong.
The civilian unemployment rate for April stood at 4.2%.
First Published: May 29, 2025 8:25 PM IS
