U.S. unemployment claims rise to 225,000, four month high

The number of Americans filing new claims for unemployment benefits rose last week to the highest level in four months, a potential sign of growing caution among employers amid economic uncertainty. According to the Labor Department, initial jobless claims increased by 13,000 to a seasonally adjusted 225,000 for the week ending May 30, the highest figure since early February.

Economists largely attributed the increase to typical volatility surrounding the Memorial Day holiday and the end of the school year, noting that seasonal adjustments do not always fully account for temporary layoffs of school workers. The four-week moving average of claims, which smooths out weekly fluctuations, rose by 6,500 to 214,750. Despite the recent rise, both initial and continuing claims remain near historically low levels. The number of people already receiving benefits fell by 8,000 to 1.78 million for the week ending May 23.

The underlying trend suggests a labor market characterized by low levels of both hiring and firing, according to economists. Recent reports indicate hiring has slowed and employers have become more selective, primarily filling critical roles or replacing departing workers....