States reported that 229,000 workers filed for new unemployment benefits during the week ending May 20, an increase of 4,000 from last week's level. First-time jobless claims have stabilized in recent weeks after drifting higher in the first quarter of the year. The surge in claims two weeks ago, which boosted them to the highest level since October 2021, has been attributed to unemployment insurance fraud in Massachusetts.
About 1.8 million workers continue to claim unemployment benefits. Economists point out that unemployment remains low by historic standards, although 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 Federal Reserve expects the unemployment rate to rise later this year.