US Jobless Claims Hold at 8-Month High Amid Trade War Uncertainty

U.S. jobless claims have remained elevated near the highest levels seen in eight months, with new applications holding steady at 248,000 for the week ending June 7. Continuing claims, representing the number of people receiving unemployment benefits, have risen to their highest point since late 2021, indicating that unemployed Americans are taking longer to find new jobs amid a slowdown in hiring. Economists and analysts attribute rising layoffs and cautious hiring to uncertainty caused by President Donald Trump's global tariff policies and trade tensions, which have dampened consumer and business sentiment. Despite these challenges, the labor market remains within a historically normal range, though concerns persist that worsening layoffs could signal an economic slowdown or recession. Federal Reserve officials have expressed caution due to the unusual combination of elevated inflation and unemployment risks, which complicates their efforts to balance price stability and employment. The stock market has shown resilience, with the S&P 500 recovering from early losses, while some experts suggest the Federal Reserve may consider rate cuts to stimulate the economy amid these labor market concerns.