New claims for jobless benefits rose to 261,000 in the most recent week, rising 28,000 from the week before, the U.S. labor department reported.

The increase beat Dow Jones’ estimate of 235,000 and was the sharpest weekly rise since 30 October, 2021, according to CNBC.

As of 20 May, 16.35 million Americans were receiving unemployment benefits, compared to 12.83 million a year before—a 27.4-percent increase.

The number of U.S. workers saying they are now unemployed rose by 310,000 last month, according to a U.S. Federal Reserve survey.

With the labor market softening, markets are now more confident that the Fed will not raise its key interest rate when it meets this week, CNBC said.

As of 8 June after the unemployment report was released, speculators were giving 73.6-percent odds that the Fed would not boost its rate.

TRENDPOST: Should the Federal Reserve raise interest rates in July (See “U.S. Treasury Must Borrow Another Trillion, Analysts Say” in this issue), consumers will cut spending even more, businesses will invest less, and more people will be out of work, pushing the U.S. economy into recession.