U.S. initial jobless claims hit 231,000, far above expectations

JOON HYOUNG LEE

Summary

The U.S. Department of Labor said initial jobless claims last week totaled 231,000, 19,000 above the consensus forecast of 212,000.
Continuing claims came in at 1.844 million—25,000 above the prior week’s revised 1.819 million but 6,000 below the market estimate of 1.85 million.
An increase in initial jobless claims is seen as an indicator that an overheated U.S. labor market is cooling.

U.S. initial jobless claims last week came in well above market expectations.

The U.S. Department of Labor said on the 5th (local time) that initial jobless claims totaled 231,000 last week. That is 19,000 higher than the consensus forecast of 212,000. Compared with the prior week’s 209,000, it is up 22,000.

Continuing claims—filed by people who claimed benefits for a second consecutive week—were tallied at 1.844 million. That is 25,000 above the prior week’s revised 1.819 million. It is 6,000 below the market estimate of 1.85 million.

Initial claims are a gauge used to assess how overheated the U.S. labor market is. An increase in claims can be interpreted as a sign that an overheated labor market is cooling.

Analysts are closely watching employment indicators such as jobless claims to assess how factors including U.S. President Donald Trump’s aggressive tariff policies are affecting corporate decision-making.

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