Weekly initial jobless claims remained steady at 248,000, marking the highest level since October. In addition, continuing claimsjumped by 54,000 to reach 1.956 million. For the past year, continuing claims have stayed above 1.8 million and have nowexceeded 1.9 million for the third consecutive week
What’s the bottom line? The recent uptick in initial unemployment claims, along with consistently high continuing claims, pointsto ongoing challenges within the job market. Furthermore, since many individuals only receive unemployment benefits for 26weeks, the rise in continuing claims as benefits expire suggests underlying labor market weakness and a slower pace of hiring.
It’s important to note that the Federal Reserve has a dual mandate: to maintain stable prices and to support maximum employment. Despite low inflation readings and increasing signs of weakness in the labor market, the Fed is widely expected to keep its benchmark Federal Funds Rate unchanged at its next meeting on June 18.
Given the ongoing uncertainty regarding the impact of tariffs on prices and overall economic conditions, policymakers have adopted a cautious “wait and see” approach.