New US labor data suggests slowing job market as recurring unemployment claims soar to highest level since November 2021

What’s going on:  

By April 8, the number of individuals who have previously filed an initial application and are now claiming unemployment benefits has increased by 61,000 to 1.87 million people, according to Bloomberg. 

The Labor Department’s data shows that US Initial Unemployment Claims also increased by 5,000 to 245,000 people through April 15. Initial jobless claims are the number of people who have recently lost their jobs and are applying for unemployment benefits for the first time.  

Why it matters:  

By analyzing unemployment trends within the U.S., experts can measure the impact of how hard it is for individuals in the country to find a job. An exorbitant number of initial jobless claims indicate that there are countless individuals facing job loss – a solid indication of economic instability. 

How it’ll impact the future:  

The rise in unemployment levels within the U.S. might reflect white-collar layoffs in 2023.  

Additionally, the high initial number of jobless claims may also be a signal that consumer spending may drop because those who recently became unemployed may not have the same amount of money to spend. These kinds of economic effects could potentially have far-reaching consequences for workers within industries like retail and hospitality.