The number of first-time jobless claims in the U.S. rose to 218,000 in the week ending May 14, reaching a 16-week high.
The U.S. Department of Labor released data on weekly applications for unemployment benefits. Accordingly, the number of people claiming unemployment benefits for the first time in the country increased by 21 thousand people to 218 thousand in the week ending May 14 compared to the previous week.
Applications for unemployment benefits, which exceeded market expectations and reached the highest level recorded since the week ending January 22, were projected to be at 200,000 in this period.
The previous week’s data on the number of applications for unemployment benefits was revised from 203 thousand to 197 thousand.
As of last week, the 4-week average of applications for unemployment benefits was 199,500, an increase of 8,250 compared to the previous week.
Ongoing unemployment claims fell by 25,000 to 1,317,000, the lowest level since December 27, 1969.
Analysts said that despite the rise in applications for unemployment benefits, the labor market is in a tight spot due to a shortage of employees, triggering strong wage increases, contributing to the rise in inflation.