The number of Americans filing new applications for jobless benefits rose by the most in about three months last week in an initial signal that layoffs may be picking up and adding to signs the labor market is weakening.
Initial claims for state unemployment benefits climbed 11,000 – the largest increase since late May – to a seasonally adjusted 235,000 for the week ended August 16, the Labor Department said on Thursday. Economists polled by Reuters had forecast 225,000 claims for the latest week.
The labor market had split into low firings and tepid hiring as businesses navigate President Donald Trump’s protectionist trade policy, which has raised the nation’s average import duty to its highest in a century. Employment gains averaged 35,000 jobs per month over the last three months, the government reported in early August. Domestic demand grew in the second quarter at its slowest pace since the fourth quarter of 2022.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, rose 30,000 to a seasonally adjusted 1.972 million – the highest since November 2021 – during the week ending August 9, the claims report showed.
The elevated so-called continuing claims align with consumers’ rising perceptions that jobs are hard to find. Economists said the continuing claims trend was consistent with the unemployment rate rising to 4.3% in August from 4.2% in July.
(Reporting by Dan Burns; Editing by Chizu Nomiyama)
