US Unemployment Claims Rise Slightly Amid Labor Market Stagnation, Government Shutdown

Unemployment claims in the United States rose slightly in the last week of September, indicating a continuation of low layoffs but stagnant hiring. Data from Haver Analytics showed initial claims increased to 224,269, up from 218,589 the previous week, while continued claims also edged higher, suggesting ongoing labor market stagnation. Economists attribute this lack of hiring momentum to factors including President Donald Trump's trade and immigration policies and the rise of artificial intelligence, which have dampened both labor demand and supply. The federal government shutdown, now in its sixth day, has suspended official data releases, complicating decision-making for the Federal Reserve, investors, and households. Key economic reports, including September's employment data, consumer price indices, and retail sales, have been delayed, making it harder for policymakers to assess the economy. Despite these challenges, states have maintained collection and submission of unemployment data, offering some insight into labor market conditions during the shutdown period.