US jobless claims jump to 242,000, highest level since December

This uptick pushes weekly jobless claims to their highest level since early December

First-time jobless claims in the US surged more than expected last week, raising concerns about potential cracks in the labour market’s resilience.

According to the latest data from the Department of Labor, an estimated 242,000 Americans filed for unemployment benefits in the week ending February 22. That marks a sharp increase of 22,000 from the previous week and exceeds economists’ expectations of 220,000 claims, according to CNBC.

Meanwhile, the total number of people receiving unemployment benefits for the week ending February 15 declined by 5,000 to 1.86 million, according to the Associated Press.  The four-week average, which evens out some of the week-to-week volatility, climbed by 8,500 to 224,000.

This uptick pushes weekly jobless claims to their highest level since early December, serving as a key indicator of rising layoffs. Additionally, a growing number of federal employees are appearing on the unemployment rolls, adding to the strain.