Jobless claims rise more than expected to highest since October 2021

First-time jobless claims rose sharply last week in a potential sign that the labor market is softening up after more than a year of interest rate hikes.

Initial filings for unemployment benefits totaled a seasonally adjusted 261,000 for the week ended June 3, an increase of 28,000 from the upwardly revised level of the previous period, the Labor Department reported Thursday.

The total was well ahead of the Dow Jones estimate for 235,000 and was the highest weekly rate since Oct. 30, 2021.

That weekly jump pushed up the four-week moving average of claims by 7,500 to 237,250, the highest since April 29. Continuing claims, which run a week behind the headline number as they measure those who…