- New data from the Labor Department shows 1.96 million people were on unemployment benefits the week ending May 31. That is the highest number since mid-November 2021, when they topped 1.97 million. While other data shows a steady labor market, these new figures indicate more people are unemployed at the same time.
Recurring claims for unemployment benefits hit their highest level in more than three years, according to data from the Labor Department released on Thursday.
The latest report, which gathered data through last month, showed 1.96 million people were on unemployment benefits during the week ending May 31. The last time recurring claims exceeded that level was the week ending Nov. 13, 2021, when 1.97 million people were on unemployment benefits, according to historical data from the Federal Reserve Bank of St. Louis.Â
Recurring jobless claims measures the number of people who remain on unemployment benefits, rather than just those who have newly enrolled during a certain time period. It is often used as a proxy for the total number of people on unemployment.
The rising number of people on unemployment benefits indicates it is taking them longer to find a new job. While new claims remained relatively steady, hovering around 248,000 for the week ending June 7, the fact unemployed people are struggling to land new jobs hints at a broader slackening in the labor market.
The latest unemployment numbers complicate last week’s monthly jobs report, which saw the U.S. add 139,000 jobs in May. That level was actually slightly higher than most estimates, which expected around 125,000 new jobs. At the same time, the unemployment rate held steady at 4.2%. However, the same report saw downward revisions of a combined 95,000 jobs in March and April.
Even though the job market hasn’t yet been characterized by acute shocks like major layoffs, it appears hiring has slowed, or at least that more people are unemployed at the same time than have been during the past three years. Exactly how the labor market will shape up over the next 12 months will depend on President Donald Trump’s trade and economic policies, which have changed considerably during the five months he has been in office.
The Federal Reserve has held off on making any changes to monetary policy until it can better assess the impacts those policies will have on the economy. Over the last several months, Fed chair Jerome Powell has reiterated the U.S. economy is in good condition, which affords the central bank time to continue to assess its next move based on how, or if, the picture changes.
This story was originally featured on Fortune.com
