U.S. weekly jobless claims rise modestly; layoffs increase in May

The number of Americans filing new claims for unemployment benefits increased modestly last week, suggesting the labor market remains tight despite growing fears of a recession amid higher borrowing costs.

Initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 232,000 for the week ended May 27. Economists polled by Reuters had forecast 235,000 claims for the latest week.

Claims remain very low by historical standards despite 500 basis points worth of interest rate increases from the Federal Reserve since March 2022, when the U.S. central bank embarked...