US initial jobless claims jump by more than expected during latest week

Jobless claims in the US rose by more than expected during the latest week, although the Memorial Day holiday may have been partially to blame.

According to the US Department of Labor, in seasonally adjusted terms, initial unemployment claims rose by 27,000 to reach 229,000 over the week ending on 4 June.

Economists at Barclays Research had forecast a rise to 215,000.

The four-week moving average of initial claims meanwhile rose by 8,000 to 215,000.

Secondary claims, which are those not being filed for the first time and referencing the week until 28 May, were unchanged from the week before at roughly 1.31m.

"The week included the Memorial Day holiday and claims data can be noisy around holidays," said Nancy Vanden Houten, Lead US economist at Oxford Economics.

"However, while we think labor markets are still currently quite tight, we can't totally dismiss the notion that the rise in claims is a sign of a modest rise in layoffs."