Layoffs Remain Low, But US Jobless Claims Rise – Layoffs Remain Low, But US Jobless Claims Rise – More Americans applied for unemployment benefits last week, but layoffs remain within the historically low range seen over the past few years.
According to the Labor Department, applications for jobless aid for the week ending August 16 rose by 11,000 to 235,000. That figure came in slightly above the 229,000 economists had expected.
Since the U.S. economy began recovering from the COVID-19 pandemic more than three years ago, weekly claims have mostly stayed between 200,000 and 250,000 — a range still considered healthy. However, recent data points to cracks in the labor market.
In July, employers added just 73,000 jobs, far short of the 115,000 analysts projected. Revisions to May and June job gains erased another 258,000 positions, while the unemployment rate ticked up to 4.2% from 4.1%.
The weak report rattled financial markets and led President Donald Trump to dismiss Erika McEntarfer, the head of the Bureau of Labor Statistics (BLS), which compiles monthly employment data. Although the BLS does not handle weekly jobless claims directly, its seasonal adjustment calculations are included.
Washington, D.C. continues to face the highest unemployment rate in the country, topping 6% for the third straight month in July. The District’s struggles are linked to large-scale federal layoffs under Trump’s Department of Government Efficiency, as well as a slowdown in international tourism — one of the city’s key revenue drivers. Neighboring Maryland and Virginia also saw jobless rates climb in July.
Since the start of Trump’s second term, federal workers across agencies have been laid off or pressured to resign, prompting multiple lawsuits from unions and advocacy groups.
Meanwhile, job openings nationwide fell to 7.4 million in June, down from 7.7 million the month before. Worker resignations — often seen as a sign of job-market confidence — also dropped to their lowest level since December.
Several major corporations have announced layoffs in 2025, including Microsoft, Google, Meta, Intel, Disney, Starbucks, Southwest Airlines, CNN, Dow, and Procter & Gamble.
Economists say uncertainty surrounding Trump’s trade policies, particularly tariffs, has made businesses hesitant to expand payrolls.
The Labor Department’s latest report also showed the four-week average of jobless claims rose by 4,500 to 226,500. The total number of Americans receiving unemployment aid climbed by 30,000 to 1.97 million, the highest since November 2021.
