US Jobless Claims Rise to 211,000 as Iran War Continues

The number of Americans filing for unemployment benefits rose last week but stayed at a historically low level despite economic uncertainty linked to the war in Iran. U.S. applications for unemployment benefits for the week ending May 9 rose by 12,000 to 211,000, the Labor Department reported Thursday.

That was slightly above the 207,000 forecast by analysts surveyed by the data firm FactSet. Weekly filings are viewed as a proxy for layoffs and a real-time measure of labor market conditions. The labor market has remained in what economists describe as a low-hire, low-fire state.

This has held the unemployment rate at 4.3 percent while making it harder for some job seekers to find new work. Employers added a surprising 115,000 jobs in April.

The war in Iran, which began in late February, has kept the Strait of Hormuz closed. The waterway carries one-fifth of the world's oil supply. Since the conflict started, oil prices have increased more than 50 percent and the average U.S. price for a gallon of gasoline has risen to $4.53 from less than $3.

Government data released this week showed consumer inflation rose 3.8 percent from April 2025, the largest increase in three years. Wholesale prices rose 6 percent from a year earlier, the highest level in more than three years. The producer price index jumped 1.4 percent from March to April, its largest monthly gain in more than four years.

Two weeks ago, the Federal Reserve left its benchmark interest rate unchanged. The central bank cited economic uncertainty from instability in the Middle East and inflation that remains above its 2 percent target. Some policymakers have indicated they may consider raising rates later this year.