Initial unemployment claims posted an unexpected increase last week in a potential trouble sign for the wobbling U.S. economy.
First-time filings for unemployment insurance totaled a seasonally adjusted 241,000 for the week ending April 26, up 18,000 from the prior period and higher than the Dow Jones estimate for 225,000, the Labor Department reported Thursday. This was the highest total since Feb. 22.
Continuing claims, which run a week behind and provide a broader view of layoff trends, rose to 1.92 million, up 83,000 to the highest level since Nov. 13, 2021.
Much of the gain seemed to come from one state — New York, where claims more than doubled to 30,043, according to unadjusted data. There was no apparent reason for the surge listed in the news release.
The District of Columbia, which had seen a sharp increase earlier this year amid President Donald Trump’s efforts to shrink the federal government payroll, saw a modest increase last week.
The report comes amid several trouble signs for the economy, though the labor market has remained stable.
In a release Wednesday, the Commerce Department said gross domestic product fell at a 0.3% annualized rate in the first quarter, the first contraction in three years. Much of the decline was driven by a surge in imports ahead of Trump’s tariffs announced in early April, though consumer spending cooled and a pullback in government outlays also contributed to the decline.
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