U.S. jobless claims rise to 211,000 as Iran war clouds labor outlook

U.S. initial jobless claims rose by 12,000 to 211,000 for the week ended May 9, 2026, the Labor Department said May 14, topping FactSet expectations of 207,000 while remaining historically low. The four-week moving average increased by 750 to 203,750. Continuing claims for the week ended May 2 rose by 24,000 to 1.78 million, in line with forecasts. The unemployment rate stands at 4.3%, with economists describing the labor market as “low-hire, low-fire.” The Iran war has increased economic uncertainty, with the Strait of Hormuz closed and oil prices up more than 50% since late February. U.S. gasoline prices have climbed to $4.53 a gallon from below $3. Consumer inflation rose 3.8% from April 2025, while wholesale prices rose 6% year over year. The Federal Reserve left rates unchanged on April 30, 2026, citing Middle East instability and elevated inflation.