US jobless claims up to 215,000, labor market resilient

The number of Americans filing for unemployment benefits rose last week, but the labor market remains historically resilient despite economic uncertainty stemming from the ongoing conflict with Iran. The Labor Department reported Thursday that initial jobless claims increased to 215,000, up from 210,000 the previous week.

The four-week moving average, which smooths out weekly volatility, also rose by 6,300 to 209,000. Economists note that these figures remain near historic lows. Carl Weinberg, chief economist at High Frequency Economics, stated that the recent uptick is trivial within a labor market of 159 million workers.

Weekly claims, a proxy for layoffs, have consistently stayed within a low range of 200,000 to 250,000 since the U.S. economy recovered from the pandemic-induced recession in 2020. The total number of people collecting unemployment aid also rose slightly, increasing by 15,000 to 1.79 million for the week ending May 16. This persistent low level of claims indicates most companies are not resorting to widespread job cuts.

However, hiring has slowed significantly. Last year, employers across all sectors added fewer than 10,000 jobs per month, marking the weakest...