The number of new applications for unemployment benefits unexpectedly increased by 9,000 to 212,000 last week, the highest level since January.
The reading marks the highest number of jobless claims in months and shows the labor market might be taking on a bit of water as the Federal Reserve keeps interest rates high and teases another upward rate revision.
Jobless claims are seen as a proxy for layoffs — if more people are claiming unemployment insurance, it suggests workers are getting laid off. The new numbers are in line with some expectations the labor market will soften.
Still, despite the uptick, jobless claims are still relatively low, suggesting underlying strength in the labor market.
“Net, net, there are no cracks appearing in the labor market, which makes the chance of the Fed executing on all three of the rate cuts
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