US unemployment claims rise but remain at healthy level
WASHINGTON (AP) — U.S. applications for unemployment benefits rose last week, but layoffs remain at historically healthy levels. The Labor Department reported Thursday that 209,000 people filed jobless claims last week, up from a revised…
The U.S. saw a rise in unemployment claims last week, with 209,000 people filing jobless claims, according to the Labor Department. This number was higher than the previous week's revised figure of 200,000 and exceeded the expected 205,000. However, the four-week average of applications remained steady at 199,000. Unemployment claims serve as an indicator of layoffs, and they have been at a historically low range of around 200,000 to 230,000 per week over the past year. This suggests that those who currently have jobs enjoy a high level of job security.
The U.S. unemployment rate stands at 4.1%. However, the situation is less favorable for those seeking employment and those who have lost their jobs and are searching for new work. Companies, still grappling with worker shortages that emerged after the end of COVID-19 lockdowns, are cautious about both laying off staff and hiring new employees.
Economists refer to this job market as a "no hire, no fire'' scenario. In the past month, companies, government agencies, and nonprofits collectively cut 23,000 jobs instead of increasing them, reported the Labor Department last week.
This year, employers have added 61,000 jobs per month, a significant improvement from the 9,700 jobs averaged last year – the weakest hiring outside a recession since 2002. Despite discouraging factors such as high interest rates and President Donald Trump's unconventional trade policies, hiring has remained well below the levels seen in 2023 and 2024, which averaged 166,000 and 491,000 jobs per month, respectively.
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