Weekly Jobless Claims Remain at the Highest Level in 8 Months/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Weekly U.S. jobless claims remained elevated at 248,000, the highest in eight months. The persistent level signals rising layoffs amid economic uncertainty driven by Trump’s global tariff policies. Federal Reserve officials remain cautious, citing potential risks of both inflation and unemployment.
U.S. Jobless Claims Remain Elevated – Quick Looks
- Weekly claims: 248,000 for the week ending June 7, unchanged from previous week.
- Highest level since October 2024, signaling potential rise in layoffs.
- Four-week average climbed by 5,000 to 240,250, showing gradual softening.
- Total continuing claims: 1.96 million, up 54,000, highest since Nov 2021.
- Economist forecast: 244,000 claims; actual figure slightly exceeded expectations.
- Trump’s tariffs and trade war tensions are major contributors to economic uncertainty.
- Fed interest rate remains at 4.3%, with Powell noting inflation-unemployment dilemma.
- U.S. economy shrank at 0.2% annual pace in Q1 2025, partly due to pre-tariff import surge.
- Job market cooling: More layoffs, fewer job quitters, reduced confidence in labor prospects.
- Major layoffs this year include Google, Meta, Microsoft, Southwest Airlines, and more.
Jobless Claims Hold at 8-Month High as Trade Fears Shake Confidence – Deep Look
WASHINGTON (AP) — Weekly unemployment claims in the U.S. remained at their highest level in eight months, holding steady at 248,000 for the week ending June 7, according to new data from the Labor Department released Thursday.
The figure matches the prior week’s total, signaling a stall in employment growth and growing concerns that job market resilience is fading amid global trade instability. Analysts had forecast a slightly lower number of 244,000, underscoring the surprise behind the stagnant figure.
Economic Drag from Trade Policy
The ongoing rise in jobless claims comes as businesses adjust to the economic ripple effects of President Donald Trump’s global tariff campaign, which includes sweeping 10% tariffs on nearly all imports. Although many of the tariffs have been softened or delayed, businesses remain cautious, leading to restrained hiring and, increasingly, layoffs.
“It’s not just tariffs—it’s the uncertainty,” said one economist. “Companies don’t know how to plan their hiring budgets.”
Trump’s strategy, aimed at reviving U.S. manufacturing and shrinking the federal workforce, has seen mixed results. While proponents praise its “America First” ethos, critics warn of downstream effects on growth, trade, and employment.
Early Signs of a Softening Labor Market
Despite remaining within a historically “normal” range, the current level of weekly jobless claims is raising red flags. It’s the highest since October 2024, suggesting that layoffs are picking up after a period of strong hiring.
The four-week average, which helps smooth out volatility, rose to 240,250, further supporting the idea that the labor market is cooling. Additionally, the total number of Americans receiving unemployment benefits jumped to 1.96 million, a level not seen since November 2021.
In May 2025, the U.S. added 139,000 jobs, lower than previous months but still indicative of slow, sustained hiring. However, that figure has failed to counterbalance the rising number of layoffs.
Confidence Wanes Among Workers
A deeper dive into recent labor statistics shows a decline in job-hopping confidence. Fewer Americans are quitting their jobs—a behavior often interpreted as a sign of optimism about finding better employment. Simultaneously, layoffs have been edging upward.
Back in late 2022, there were two job openings for every unemployed person. Now, the ratio has slipped to one-to-one, reflecting a labor market that is no longer red-hot.
Fed Policy and Economic Outlook
The Federal Reserve has held its benchmark interest rate at 4.3% for three straight meetings. Having slashed rates three times in 2024, the Fed has now pivoted to a cautious wait-and-see approach, given the potential for rising inflation linked to Trump’s trade policies.
Fed Chair Jerome Powell recently warned that simultaneous inflation and job loss could disrupt the central bank’s goals of price stability and full employment.
“We’re in a very complex moment,” Powell said. “Trade policy is creating both inflationary and deflationary pressures.”
The central bank is widely expected to leave interest rates unchanged in its upcoming June meeting, as it monitors the impact of trade on hiring and consumer spending.
Corporate Cutbacks Continue
Across industries, high-profile companies have launched new rounds of layoffs:
- Google has offered buyouts ahead of a looming antitrust court ruling.
- Meta, Microsoft, Procter & Gamble, Workday, Starbucks, and CNN are among those trimming their workforces.
- Southwest Airlines also cut staff amid rising fuel costs and slowed travel demand.
These announcements have fueled anxieties that the job market may be heading into a broader correction after its post-pandemic hiring boom.
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