US Jobless Claims Jump to 2-Month High, Continuing Claims Hit Highest Level In Over 3 Years

Continuing claims, which reflect the number of Americans receiving benefits beyond the first week, rose by 83,000 to 1.92 million.

Weekly unemployment claims rose more than expected last week, signaling renewed labor market stress amid a broader economic slowdown.

First-time filings for unemployment insurance totaled a seasonally adjusted 241,000 for the week ending April 26 – the highest weekly total since February 2022 – according to Labor Department data released Thursday. 

Continuing claims, which reflect the number of Americans receiving benefits beyond the first week, rose by 83,000 to 1.92 million — marking the highest level since Nov. 13, 2021. The increase suggests that laid-off workers are struggling to find new jobs at the same pace as earlier in the recovery.

A large portion of the rise came from New York, where initial claims more than doubled to 30,043 on an unadjusted basis. The Labor Department did not explain the sharp gain in its press release.

The District of Columbia also posted a modest uptick in claims. That region has seen a rise in filings in recent months amid President Donald Trump's push to reduce the size of the federal workforce.

The claims report arrives on the heels of downbeat economic data. On Wednesday, the Commerce Department said U.S. GDP contracted at an annualized rate of 0.3% in the first quarter (Q1) — the first decline in three years. A jump in imports ahead of Trump’s announced tariffs, slowing consumer demand, and reduced government spending were key drivers.

Meanwhile, the four-week moving average for jobless claims, which smooths weekly volatility, rose by 5,500 to 226,000.

U.S. equity markets opened higher on Thursday, supported by strong earnings from Microsoft (MSFT) and Meta (META). 

The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, traded 1.07% higher, while the Invesco QQQ Trust, Series 1 (QQQ), which tracks the Nasdaq Composite, was up 1.7%. The SPDR Dow Jones Industrial Average ETF (DIA) was up 0.5%. 

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