U.S. Jobless Claims Rise to Highest Level Since October
The number of initial jobless claims in the United States rose to 247,000 for the week ending May 31, 2025, according to data released by the U.S. Department of Labor on Thursday. This is an increase of 8,000 claims from the previous week and marks the highest level since October 2024.
The number was higher than economists’ forecast of 235,000, based on a Bloomberg survey.
The week also included the Memorial Day holiday, which can cause short-term changes in employment reporting. However, several recent reports suggest a broader slowdown in the labor market may be underway.
The four-week moving average, which helps smooth out weekly fluctuations, also rose to 235,000 again, the highest since October. This could indicate a possible increase in layoffs or hiring slowdowns across some sectors.
At the same time, continuing claims, which measure the number of people still receiving unemployment benefits, fell slightly to 1.9 million. Despite the drop, this number remains higher than it was a year ago, suggesting it is taking longer for unemployed workers to find new jobs.
A separate report by Challenger, Gray & Christmas said that U.S. employers announced 93,800 job cuts in May. While that figure is lower than April, it is still elevated compared to last year’s monthly averages. The services and retail sectors saw the most planned layoffs.
The report quoted Andrew Challenger, a senior vice president at the firm, who said, “Tariffs, funding cuts, and lower consumer spending are all putting pressure on companies. Many are slowing hiring and issuing layoff notices.”
Several major companies, including Microsoft, Walt Disney, and Booz Allen Hamilton, have recently announced job cuts.
Meanwhile, unemployment trends will be closely watched in the May jobs report, which is due Friday. Economists expect it to show a slight slowdown in hiring, with the unemployment rate holding at 4.2%.
This data follows another report showing that the U.S. trade deficit narrowed in April, due to a sharp drop in imports, possibly linked to tariff concerns and changes in global trade behavior.
