The number of Americans applying for unemployment benefits unexpectedly soared last week.
The Department of Labor said Thursday that new claims for unemployment benefits rose by 20,000 to 243,000 last week.
Claims were boosted by a spike in claims in Texas after Hurricane Beryl.
Jobless claims are a proxy for layoffs. While they have climbed somewhat in recent months, signaling a cooling of the labor market, they are still at a level that is low by historical standards.
Claims can be volatile week-to-week so economists look to the four-week moving average of claims for a better gauge of the health of the labor market. This moved up by 1,000 to 234,750.
Continuing claims, which are reported with a one-week delay, rose by 20,0000 to 1,867,000. This is the highest since November of 2021.
