The number of people applying for unemployment benefits jumped by 8,000 last week to 229,000, more than economists had forecast.
This was the highest number of new applications for jobless benefits in four weeks.
Economists had forecast new claims would come in at 219,000.
The prior week’s estimate was revised up to 221,000 from 219,000.
Claims fell in 31 of the states and territories reporting to the federal government. Claims rose in 22. The biggest increases were in Tennessee (+1,880), Michigan (+1,557), Missouri (+839), Minnesota (+756), and Illinois (+750). The largest declines were in California (-1,065), Pennsylvania (-818), Ohio (-546), New York (-463), and Florida (-336).
Claims were likely elevated by the end of the school year in many parts of the country.
Before seasonal adjustments, claims fell slightly to 195,430.
Jobless claims can be volatile week to week so many analysts look at the four-week average for a clearer sign of trends in the labor market. This fell by 750 to 222,550.
Continuing claims, which are reported with a one week delay, rose by 2,000 to 1,792,000 in the week ended May 25.
Initial claims have stayed between 194,000 and 232,000 this year, a historically long stretch at a historically low level. This suggests that layoffs are low and employers are still holding on to workers despite some signs of a slowdown.
The number of vacant jobs fell in April compared with the previous month. The payroll data for April showed employers added 175,000 workers, the lowest level of job growth since October’s 165,000, and the unemployment rate ticked up from 3.8 percent to 3.9 percent.
The Labor Department will release data on May’s payroll growth and unemployment on Friday. Employers are expected to have added 188,000 jobs in May and the unemployment rate is seen as holding steady at 3.9 percent, continuing the historic stretch of unemployment below four percent.
