Jobless claims have reached 213,000, the highest number recorded since August 2023, according to data released Thursday by the Labor Department.
With hundreds of thousands of Americans filing for unemployment benefits, the figures could signal the end of a robust labor market.
In the week that ended on May 4, there were 231,000 jobless claims. The number was actually higher than the initial prediction of 214,000. The department stated that the figure was the highest since Aug. 26, 2023.
Prior to the release of the actual figure on unemployment claims, CNBC reported that there were reports of "strong hiring." Hiring in April was lighter compared to what was expected to happen. In addition, the number of job openings have declined as well.
Continuing claims have also increased by up to 17,000, reaching 1.78 million as of the latest report. Based on the moving average of claims, the numbers have increased to 215,000, up from 4,750 in the previous week.
According to Christopher Rupkey, chief economist at FWDBONDS, the numbers that show in the weekly jobless claims are among the timeliest indicators of the state of economy.
"Weekly jobless claims are one of the timeliest indicators of when the economy is starting to undergo serious deterioration, and the magnitude of new layoffs this week looks worrisome," he said.
Wall Street estimated that the nonfarm payrolls would increase by 240,000 in April. However, the actual number was only 175,000.
According to Business Standard's report, the unemployment rate has increased from a 3.8% in March, to a 3.9% in April.
