U.S. Jobless Claims Hit 10-Month High

The U.S. Labor Department reported a significant increase in first-time claims for unemployment benefits, reaching a 10-month high. Initial jobless claims rose by 13,000 to a seasonally adjusted 242,000 for the week ending June 8, up from the previous week's 229,000. This was higher than the 225,000 claims economists had predicted. The four-week moving average of claims also increased to 227,000.

Continuing claims for unemployment benefits rose by 30,000 to 1.820 million in the week ended June 1. The unemployment rate in the U.S. increased to 4.0 percent in May from 3.9 percent in April, marking the first rise since January 2022. Analysts attribute the cooling labor market to the Federal Reserve's interest rate hikes, which have totaled 525 basis points since 2022. Despite these increases, the labor market remains within a range considered healthy. The Federal Reserve recently kept its benchmark lending rate at a 23-year high in response to signs of slowing economic growth and cooling inflation.