U.S. Job Market Slows as Weekly Unemployment Applications Rise/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Jobless claims rose slightly last week to 237,000, indicating ongoing employer caution amid economic uncertainty. Despite signs of slowing growth, layoffs remain low, reflecting a steady labor market. Wall Street eyes Friday’s jobs report for further insight into hiring trends.
U.S. Jobless Claims Tick Up Quick Looks
- Weekly unemployment claims rose by 8,000 to 237,000.
- Claims remain within a healthy pre-recessionary range (200,000–250,000).
- The four-week moving average of claims also ticked up slightly.
- Total continuing claims dipped by 4,000 to 1.94 million.
- Unemployment rate holds steady at 4.2%, near historic lows.
- Job openings fell to 7.2 million in July, signaling weakening demand.
- Hiring has slowed considerably, averaging 35,000 new jobs monthly since May.
- Fed may cut rates soon due to cooling labor market.
- Growth hit just 1.3% in 2025’s first half, down from 2.5% in 2024.
- Tariff uncertainty and weak consumer demand weigh on business expansion.
U.S. Job Market Slows as Weekly Unemployment Applications Rise
Deep Look
WASHINGTON (AP) — Applications for unemployment benefits in the United States rose slightly last week, a modest uptick that nevertheless underscores a cooling labor market and increasing uncertainty in the broader economy. The Department of Labor reported Thursday that initial jobless claims for the week ending August 30 rose to 237,000, up by 8,000 from the previous week.
While this number exceeded economists’ forecasts of 231,000, the figure remains well within a historically stable range. For context, claims have fluctuated between 200,000 and 250,000 since the country emerged from the COVID-19 pandemic recovery phase in 2021.
A “No Hire, No Fire” Economy
Despite the uptick in jobless applications, economists say layoffs are still relatively low. The current environment has been described by analysts as a “no hire, no fire” economy, where companies hesitate to either significantly expand or reduce their workforces. This suggests many employers are choosing to retain current staff while slowing or freezing new hiring initiatives.
This dynamic is evident in other labor metrics. On Wednesday, the government reported that the number of job openings had dropped to 7.2 million by the end of July — fewer than expected and a clear sign that demand for workers is declining.
July’s Grim Jobs Report Still Echoes
Adding to concerns is the recent July jobs report, which revealed only 73,000 new jobs were added last month — far short of projections. Compounding the negative outlook were substantial downward revisions to job gains from May and June.
The weak data sent ripples through financial markets and prompted an unusual move from President Donald Trump, who fired the head of the agency responsible for compiling the report. Economists are now watching closely for the August jobs report, due Friday, which is expected to show only 80,000 new private-sector jobs added.
If confirmed, it would mark the continuation of a pronounced slowdown in hiring. Over the past three months, job growth has averaged just 35,000 new positions per month — roughly 25% of the monthly average seen in 2024.
Growth Slows Across the Board
The weakening job market aligns with broader signs of economic sluggishness. U.S. GDP growth slowed to 1.3% in the first half of 2025, significantly below the 2.5% pace recorded in 2024. Economists point to slowing consumer demand, high borrowing costs, and uncertainty over Trump’s renewed tariff policies as key factors dampening business investment and expansion.
As many companies pause on hiring and infrastructure projects, growth has cooled across sectors — particularly in manufacturing, retail, and logistics.
Federal Reserve Signals Possible Interest Rate Cut
In response to the mounting signs of labor market weakness, Federal Reserve Chair Jerome Powell recently signaled that the Fed may consider an interest rate cut at its next policy meeting on September 16–17. Such a move would mark the first rate cut in 2025 and would be aimed at stimulating borrowing, spending, and hiring.
A rate cut could ease pressure on sectors dependent on loans, such as housing, automotive, and small businesses. However, critics warn that looser monetary policy could also reignite inflation, especially as Trump’s new tariffs may drive up import prices on a wide range of goods.
More Data from the Labor Department
The four-week moving average of jobless claims — a measure that helps smooth out week-to-week volatility — rose by 2,500 to 231,000, reflecting a subtle but sustained upward trend.
Meanwhile, continuing claims — the number of people actually receiving unemployment benefits — fell by 4,000 to 1.94 million, a figure still considered consistent with a resilient labor market, though signs of softening remain.
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