States reported that 242,000 workers filed for new unemployment benefits during the week ending May 13, a decrease of 22,000 from last week's level. First-time jobless claims began to rise earlier this year, with about 1.8 million workers continuing to claim unemployment benefits.
Economists point out that unemployment remains low by historic standards, underscoring how the labor market continues to thrive despite the Federal Reserve's efforts to cool the economy and tamp down inflation by raising interest rates. But some evidence of a slowing labor market has begun to show, including an increasing number of layoffs and a falling number of job openings.
On the other hand, U.S. employers added 253,000 jobs in April, and the unemployment rate dipped to 3.4 percent, matching a record low. The Fed expects the unemployment rate to rise to 4.5 percent later this year, which would translate into the loss of more than 500,000 jobs.