WASHINGTON – Weekly unemployment benefit applications saw a modest uptick last week, though the job market continues to demonstrate resilience amid growing inflation pressures caused by escalating energy costs from international conflicts.
Applications for initial state unemployment assistance climbed by 12,000 to reach a seasonally adjusted 211,000 during the week ending May 9, according to Thursday’s report from the Labor Department. Economic forecasters surveyed by Reuters had anticipated 205,000 applications for that period.
The ongoing U.S.-Israel conflict with Iran has created disruptions to shipping routes through the Strait of Hormuz, driving up costs for various commodities beyond energy, including fertilizers, petrochemicals and aluminum.
Government data released Wednesday showed producer prices experienced their largest jump in four years during April. Industry experts worry that supply shortages and climbing inflation rates might trigger job cuts across certain sectors.
The count of individuals collecting unemployment assistance beyond their first week of benefits – which serves as an indicator of hiring activity – grew by 24,000 to reach a seasonally adjusted 1.782 million for the week concluding May 2, according to the claims data.
Last week’s government employment report revealed that nonfarm payrolls expanded by 115,000 positions in April, marking the second consecutive month of robust job growth. The overall unemployment rate remained steady at 4.3%.
