US jobless claims hit 3-month high

Initial claims for US unemployment benefits rose unexpectedly last week, suggesting the labor market in the world’s largest economy is under strain from elevated borrowing costs.

The claims increased by 22,000 to 242,000, during the week ended Feb. 22, marking the highest level in three months, the Labor Department data showed.

This came against forecasts for a decline to 220,000, as the previous week's data was revised upward by 1,000.

The four-week average of claims, which evens out some of that weekly volatility, rose by 8,500 to 224,000.

Layoffs contributed to the rise in claims. The cuts are partly linked to the Trump administration’s efforts to reduce spending and shrink the federal workforce.