Applications for US unemployment benefits rose last week to the highest level in more than two months, reinforcing signs that the labour market is losing momentum.
Initial claims for unemployment insurance increased by 8,000 to 237,000 in the week ended August 30, according to Labour Department data released Thursday.
Week EndingInitial Claims (SA)Initial Claims (NSA)4-Wk Moving Average (SA)Aug 30237,000196,999231,000Aug 23229,000191,208228,500Aug 16234,000194,217226,000Source: US Labor Department, SA- Seasonally adjusted, NSA- Not seasonally adjusted.
That marked the highest reading since June. Economists surveyed by Bloomberg had projected 230,000 applications.
The four-week moving average of new claims, which helps smooth out week-to-week volatility, rose to 231,000, the highest since July.
Before seasonal adjustments, initial applications also advanced, with Connecticut and Tennessee reporting the largest increases.
Continuing claims, a measure of the number of people already receiving benefits, were little changed at 1.94 million in the prior week.
Behind the data
Companies are showing more caution in adding staff while assessing the economic impact of President Donald Trump’s policies.
Data from outplacement firm Challenger, Gray & Christmas showed that hiring plans in August were the weakest for any August since records began in 2009, while announced job cuts increased.
Separate data underscored the slowdown in private employment.
Payroll processor ADP reported Thursday that private employers added 54,000 jobs in August, well below the 75,000 increase expected in a Dow Jones survey of economists.
The figure also represented a sharp drop from the revised 106,000 gain in July.
Nela Richardson, chief economist at ADP, said the labour market began the year with strong job creation, but momentum has been disrupted by broader uncertainties.
She cited rising consumer concerns, persistent labour shortages, and disruptions linked to artificial intelligence as factors weighing on hiring.
The ADP data highlighted softness across several industries.
Trade, transportation and utilities shed 17,000 positions in August, while education and health services lost 12,000 jobs.
Taken together, the latest figures point to a cooling labour market after a period of resilience.
The rise in jobless claims, weaker hiring intentions, and slower payroll growth suggest employers are becoming more cautious in the face of economic uncertainty.
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