US recurring jobless claims rose to highest since 2021

US continuing jobless claims surged to the highest level since November 2021. This could signal a rise in the unemployment rate in May, Bloomberg says. 

The number of Americans on benefit rolls totalled 1.92 million after increasing by 26,000 in the week to May 17. The result exceeded the median forecast of 1.89 million by Bloomberg economists. 

The news agency highlights that the jump in recurring applications reflects the impact of US President Donald Trump's trade policies and government spending initiatives on the labor market. Economist at Pantheon Macroeconomics Oliver Allen expects the government’s employment report for May, which is due June 6, to show a slight uptick in the US unemployment rate. 

However, labor market data continues to indicate low hiring and firing in the US, Bloomberg says. Last week, initial jobless claims rose by 14,000 to 240,000, remaining in the range of the past year.