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yesterday

US jobless claims climb to 240,000; GDP shrinks 0.2% in Q1

Supply shocks from trade policies have introduced uncertainty that Federal Reserve officials say could slow hiring

Pedestrians walk past a Bank of America ATM in Charlotte, North Carolina.
Image
Hundreds of people line up outside a Kentucky Career Center hoping to find assistance with their unemployment claim in Frankfort, Kentucky, U.S. June 18, 2020. REUTERS/Bryan Woolston/File Photo
FILE - A hiring sign is displayed at a retail store in Chicago on Monday, March 11, 2024. (AP Photo/Nam Y. Huh, File)

Overview

  • Initial unemployment claims rose by 14,000 to a seasonally adjusted 240,000 for the week ending May 24, exceeding expectations.
  • Continuing claims climbed by 26,000 to 1.919 million for the week ending May 17, reflecting firms’ hiring hesitancy.
  • The US economy contracted by 0.2% in the first quarter of 2025, a slight upward revision from earlier estimates.
  • Minutes from the Federal Reserve’s May meeting highlighted risks that trade-driven supply shocks could weaken labor market conditions.
  • A US trade court blocked most of President Trump’s tariffs, prompting an appeal from the administration.