US Weekly Jobless Claims Rise to Two-Month High

Recent data from the U.S. Department of Labor reveals a notable rise in unemployment claims, signaling a potential weakening in the labor market. Initial jobless claims increased by 11,000 to 235,000 for the week ended August 16, marking the highest level since June and exceeding economists' forecasts. Continuing claims also rose to 1.972 million, the highest since November 2021, indicating a growing number of individuals receiving ongoing unemployment benefits. Economists attribute this trend to cautious hiring and increased layoffs, partly influenced by President Donald Trump's protectionist trade policies, which have slowed domestic demand and hiring growth. Despite these increases, some experts note that the pace of layoffs remains relatively limited, with jobless claims staying within historically moderate ranges. Overall, the data suggest a labor market that is slowing down but has yet to show widespread layoffs.