US weekly jobless claims increase moderately, labor market remains stable

The number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable labor market even as rising energy prices from the war with Iran drive up ‌inflation.

Initial claims ⁠for ⁠state unemployment benefits rose 12,000 to a seasonally adjusted 211,000 for the week ended May 9, the Labor Department said on Thursday. Economists polled by Reuters had forecast 205,000 claims for the latest week.

Also read: US jobless claims increase less than expected amid low layoffs


The U.S.-Israel war ⁠with Iran ‌has disrupted shipping in the Strait of Hormuz, also boosting prices of ⁠other commodities, including fertilizers, petrochemicals and aluminum.

The government reported on Wednesday that producer prices recorded their biggest increase in four years in April. There are concerns that shortages and rising inflation could cause layoffs in some industries.

The number of people ‌receiving unemployment benefits after an initial week of aid, a proxy for hiring, increased 24,000 to ⁠a seasonally adjusted 1.782 million during the week ended May 2, the claims report showed.

Also read: US weekly jobless claims increase marginally as labor market remains stable

The government reported last week that nonfarm payrolls increased by 115,000 jobs in April, the second straight month of strong employment gains. The unemployment rate was unchanged at 4.3%.