Weekly jobless claims hit 229,000, the highest level since January

A man walks past a “We’re Hiring” sign posted outside of a restaurant in Arlington, Virginia on June 3, 2022.

Despite signs of an otherwise strong employment picture, initial jobless claims spiked to their highest level since January.

The number of first-time filings for the week ended June 4 was 229,000, an increase of 27,000 from the upwardly revised level in the previous period and well ahead of the 210,000 estimate. Seasonal adjustments would lead to a higher number, since the Memorial Day holiday is included.

January 15 was the last time there was a high initial claim.

Continuing claims were unchanged at just over 1.3 million, below the FactSet estimate of 1.35 million.

The four-week moving average for continuing claims fell to its lowest level in over forty years.

Less than a week after the Bureau of Labor Statistics reported that nonfarm payrolls increased by 390,000 in May, there was a rise in the number of people claiming unemployment benefits.

Despite concerns that the U.S. economy could be headed for a shallow recession, companies have continued to hire.

The Federal Reserve is trying to bring down inflation by raising the rate. The unemployment rate is near its lowest level since 1969 and the Fed is trying to slow the labor market.