US Weekly Jobless Claims Surge to a New High Since August

Applications for unemployment benefits in the United States have surged to their highest level in over eight months, as reported by the Labor Department. For the week ending May 4, claims rose by 22,000 to a total of 231,000, which is a significant increase from the 209,000 applications filed the week before. The four-week average, which smooths out weekly volatility, also increased to 215,000, up by 4,750 from the previous average.

Despite the rise in unemployment claims, the overall unemployment rate has consistently stayed below 4% for 27 months, a streak not seen since the 1960s. This low rate continues even as the Federal Reserve has enacted multiple interest rate hikes, totaling 11 increases, to curb inflation and manage wage growth. The labor market has been showing signs of cooling, with April hiring lower than expected and job openings in March at the lowest in three years. However, consumer spending has remained robust, helping to sustain economic growth.