US Initial Jobless Claims Rise to Highest Since 2021

Initial jobless claims in the U.S. rose sharply to 263,000 for the week ending September 6, marking the highest level since October 2021 and significantly exceeding economists' expectations of 235,000. This increase reflects a notable softening in labor market conditions, with continuing claims remaining steady at around 1.94 million. The rise in claims comes amid revisions showing a substantial overstatement of nonfarm payrolls in the previous year and weak job growth, including a job loss in June for the first time in over four years. Despite these labor market challenges, stock markets showed resilience, quickly recovering from initial dips following the data release. The Federal Reserve is expected to cut interest rates at its upcoming policy meeting, reflecting concerns about the slowing labor market and overall economic momentum. Consumer confidence in finding jobs has also declined to its lowest since 2013, further signaling caution in the employment outlook.