U.S. Weekly Jobless Claims Rise to 244,000, Topping Forecasts

Initial jobless claims rose slightly more than expected for the week ending May 23, signaling modest layoff pressure in a still-tight labor market. The Labor Department reported Thursday that seasonally adjusted claims increased by 2,000 to 244,000, versus an upwardly revised 242,000 the prior week. Economists polled by Reuters had forecast 240,000 claims. The four-week moving average, which smooths weekly volatility, edged up to 241,500. Continuing claims—the number of people receiving benefits after an initial week—fell by 8,000 to 1.79 million for the week ended May 16. While the readings remain historically low, the upside surprise may reinforce expectations that the Federal Reserve will keep interest rates unchanged amid stubborn inflation, as policymakers watch for any sustained weakening in labor demand.