US jobless benefits filings rose to a record high last week, reaching 247,000 new applications, the most since early October. Despite this increase, the rate remains historically low.
According to the Labor Department, weekly unemployment claims have been hovering around 200,000-250,000 since COVID-19 impacted the economy in 2020. However, growing uncertainty about tariffs affecting the broader economy has led some analysts to predict lower numbers.
Companies have lowered sales and profit expectations for 2025, citing President Trump’s tariff announcements. The Federal Reserve also held its benchmark lending rate steady, while Fed Chair Jerome Powell warned of higher unemployment and inflation risks due to tariffs.
The job market shows signs of slowing down, with fewer Americans quitting their jobs and more layoffs reported. A recent Labor Department report showed that there is one job for every unemployed person, a significant decrease from previous months.
Analysts expect the government’s monthly employment report to show US employers added 130,000 jobs in May, down from 177,000 in April. The economy shrank at an annual pace of 0.2% in the first quarter of 2025 due to surging imports caused by Trump’s tariffs.
Several companies have announced job cuts this year, including Procter & Gamble, which plans to cut 7,000 jobs over two years as part of a restructuring plan. The four-week average of jobless claims rose to its highest level since late October, with the total number of Americans receiving unemployment benefits remaining steady at 1.9 million for the week ending May 24.
Source: https://apnews.com/article/unemployment-benefits-jobless-claims-layoffs-labor-795ec07804ed3f35eb702af27c4983d0