The number of Americans who applied for unemployment benefits in early May jumped for a third week in a row to 294,000, hitting a 14-month high and adding to evidence that the U.S. labour market may have weakened.
The last time weekly claims were that high was Feb 28, 2015.
Economists had expected claims to fall to 270,000 in the period stretching from May 1 to May 7. Initial claims totaled 274,000 in the prior week.
Figures released by the U.S. Labor Department also show that the average of new claims over the past four weeks, a less volatile measure, also shot up by 10,250 to 268,250. Figures are seasonally adjusted.
Just a month earlier, initial jobless claims had fallen to a 43-year low. But with corporate profits falling, exports down, the U.S. presidential election taking unexpected twists and the global economy still hurting, companies may have pulled the reins on hiring.
In April, the U.S. created just 160,000 new jobs to mark the smallest gain since last fall, the government reported Friday. Other labour market indicators also point to a slowdown in hiring.
Even after 46,000 increase in the last three weeks, however, initial claims are still historically low. They’ve held below the key 300,000 level for 62 weeks, the longest streak since 1973.
