US jobless claims spike to 10-month peak

Applications for US unemployment benefits grew unexpectedly in the week ended June 8, hitting the highest level since late August, due to the huge turnout in California.

Labor Department data showed today, June 13, that initial jobless claims increased 13,000 to 242,000 applications for the week. This is against forecasts for a decline to 225,000 applications, from the previous week’s unrevised reading of 229,000 applications.

The four-week moving average for new claims, a better measure of labor market trends as it irons out weekly fluctuations, added 4,750 to 227,000 applications — the highest since September 2023, from last week's unadjusted average of 222,250.

In his statement yesterday, June 12, Federal Reserve Chairman Jerome Powell indicated the ongoing resilience of the US labor market, which is gradually cooling as the cumulative/delayed repercussions of a 23-year rate hike on the economy become apparent.