US Jobless Claims Hit 225,000, Highest Since February as Iran War Fuels Hiring Uncertainty
Updated
Updated · The Associated Press · Jun 4
US Jobless Claims Hit 225,000, Highest Since February as Iran War Fuels Hiring Uncertainty
3 articles · Updated · The Associated Press · Jun 4
Summary
225,000 Americans filed new unemployment claims in the week ended May 30, up 13,000 from the prior week and the highest level in four months.
The increase came as the Iran war keeps business costs elevated—oil prices are up about 50% since late February and U.S. gasoline averages $4.24 a gallon—making employers more cautious about hiring.
214,750 was the four-week average of claims, up 6,500, while continuing claims fell 8,000 to 1.78 million, reinforcing a labor market economists describe as "low-hire, low-fire."
4.3% unemployment has stayed relatively low, but inflation has climbed to 3.8% and wholesale prices to 6%, limiting the Federal Reserve's room to cut rates and potentially support hiring.
Friday's May jobs report is the next key test for whether April's 115,000 payroll gain can hold as war-driven uncertainty, high rates and slower hiring weigh on the labor market.