Jobless Claims Reach Highest Level Since October 2021

First-time jobless claims rose to 261,000 last week, the highest since October 2021, indicating a potential softening of the labor market. The four-week moving average of claims also increased to 237,250, the highest since April 29. Continuing claims fell by 37,000 to 1.757 million. The increase in jobless claims is consistent with the ongoing deterioration in credit availability and the lagged effect of the Fed's tightening. The report comes less than a week ahead of the next Federal Reserve meeting, during which central bank policymakers will have to decide their next move with interest rates.