States reported that 232,000 workers filed for new unemployment benefits during the week ending May 27, an increase of 2,000 from last week's level. First-time jobless claims have stabilized in recent weeks after drifting higher in the first quarter of the year. Unemployment claims returned to normal levels by the end of 2021 after reaching a record high during the COVID-19 pandemic.
About 1.8 million workers continue to claim unemployment benefits. Economists point out that unemployment remains low by historic standards. Layoffs were expected to rise this year as the effects of interest rate hikes spread through the economy, but that did not happen to any significant degree. Some still expect a mild recession by the second half of the year.
Meanwhile, U.S. employers added 253,000 jobs in April, and the unemployment rate dipped to 3.4 percent, matching a record low. On Friday, the Department of Labor will report on how many jobs the U.S. economy added in May, the unemployment rate and wage gains for the month.