Manufacturing Layoffs Drive Jobless Claims Up

Driven by layoffs in the auto industry, initial claims for unemployment insurance increased to 336,000 in the week ending May 27, some 7,000 higher than the previous weeks unrevised figure of 329,000, the U.S. Labor Department reported on June 1.

The departments four-week moving average of initial claims, generally a better indicator of underlying labor market conditions because it smooths out week-to-week changes, also increased last week. The moving average was 333,500, an increase of 2,750 claims from the previous weeks revised average of 330,750.