U.S. Jobless Claims Rise to 247K, Above Forecasts
Economic data released on June 5 reveals a complex picture of the U.S. economy, marked by higher-than-expected jobless claims and labor costs, alongside improvements in trade and productivity.
Labor Market: Signs of Weakness Emerge
- Initial Jobless Claims rose to 247,000, exceeding the forecast of 236,000 and up from 239,000 the previous week.
- Continuing Claims also ticked higher to 1.904 million, just below expectations of 1.910 million, and up slightly from the previous 1.907 million.
These increases may signal early signs of softening in the labor market, a trend that investors and policymakers will monitor closely in Friday’s nonfarm payrolls report.
Inflation Risk: Labor Costs Climb Sharply
- Unit Labor Costs in Q1 surged 6.6%, far above the expected 5.7% and the prior 2.0%, raising concerns about potential wage-driven inflation.
- On a positive note, Nonfarm Productivity rose 1.5%, reversing from prior contractions of -0.8% (forecast) and -1.7% (previous quarter).
Trade Balance and Output: Signs of Resilience
The U.S. trade deficit narrowed to -$61.60 billion, an improvement over both the expected -$67.60 billion and April’s -$138.30 billion.
Exports rose to $278.5 billion, while imports held steady at $419.0 billion.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
