The number of people filing for initial unemployment benefits in the U.S. was higher than expected for the week ending May 31, coming in at 247,000 compared to the expectation for 235,000. That marks an increase of 8,000 compared to the prior week and is the second consecutive week of rising claims. It’s also the highest level since October.
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These results point to a softening labor market that could be starting to show cracks. It’s also a negative for the stock market because it hints that corporations could be cutting back on employees, which could lead to lower earnings in the future.
Initial Jobless Claims and Continuing Jobless Claims Provide Mixed Results
At the same time, continuing employment claims tallied in at 1.904 million, lower than the expectation for 1.910 million and falling from 1.907 million during the previous week. While the result came in below expectations, it’s still elevated based on the 2-year average level, signaling difficulties in finding work.
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