06/05/2025

Weekly Jobless Claims Hit Seven-month High

Meanwhile, imports post record decline

The number of Americans filing new applications for unemployment benefits increased to a seven-month high last week, pointing to softening labor market conditions amid mounting economic headwinds from tariffs.

The report from the Department of Labor (DOL) on Thursday also continued to show workers losing their jobs having a tough time landing new opportunities as uncertainty caused by President Donald Trump's aggressive trade policy leaves employers reluctant to increase headcount. The data included the Memorial Day holiday, which economists said could have caused difficulties with the seasonal adjustment and likely contributed to the second straight weekly increase in unemployment claims. Still, they said the report offered some evidence of labor market strains.

"We won't dismiss the rise in claims over the last two weeks, which may be signaling weakening labor market conditions in response to the Trump administration's tariff policies and uncertainty," said Nancy Vanden Houten, Oxford Economics' lead U.S. economist. "However, seasonal quirks might have contributed to the rise in claims."

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