US Jobless Claims Surge to Nearly Four-Year High Amid Softening Market
US jobless claims rose to 263,000 for the week ending Sept. 6, a nearly four-year high, signaling a softening job market and Federal Reserve rate cuts.
Overview
- Applications for US unemployment benefits increased by 27,000 to 263,000 for the week ending September 6, reaching their highest level in nearly four years.
- This significant rise in weekly jobless claims, surpassing economists' forecasts, indicates a notable increase in layoffs and a softening trend within the American job market.
- The 263,000 applications represent the highest number of Americans filing for unemployment benefits seen in almost four years, reflecting a shift in employment conditions.
- Despite the surge in new applications, the total number of Americans collecting unemployment benefits remained stable at 1.94 million, suggesting some stability in long-term claims.
- The Federal Reserve is expected to cut interest rates by a quarter-percentage-point at its upcoming meeting, responding to the observed sluggishness in the job market.
Report issue
Read both sides in 5 minutes each day
Analysis
Center-leaning sources frame this story by emphasizing negative economic indicators and directly attributing them to "Trump’s erratic economic policies" and "unpredictable taxes." They use loaded language like "grim" and "spiraling" to create a narrative of a weakening labor market caused by policy uncertainty, bolstering fears about the economy's direction.
"The jump in people applying for jobless benefits comes at a delicate time for the economy, with new government data on Thursday showing that consumer prices rose 2.9% in August from a year ago, up from 2.7% the previous month."
CBS News"U.S. jobless claim applications jumped to their highest level in almost four years last week, the latest sign that the labor market is softening."
ABC News"The number of Americans filing for unemployment benefits for the week ending Sept. 6 rose 27,000 to 263,000, the Labor Department reported Thursday."
Associated PressArticles (6)
Center (3)
FAQ
The surge in US jobless claims is attributed to a softening labor market, with an increase in layoffs, possible overstatement of nonfarm payrolls in recent data, stalled job growth in August, job losses in June, and tariff uncertainty impacting economic conditions.
The 263,000 jobless claims exceeded economists' forecast of 235,000 and marked the highest weekly level since October 2021, indicating a notable increase compared to the relatively stable range of 200,000 to 250,000 claims seen since the recovery from the COVID-19 pandemic.
Despite the increase in new claims, the total number of Americans receiving unemployment benefits remained stable at around 1.94 million, suggesting relative stability in ongoing unemployment levels.
The Federal Reserve is expected to cut interest rates by a quarter-percentage-point at its upcoming policy meeting as a response to the observed sluggishness and softening in the labor market.
Additional supporting data includes reports of stalled job growth in August, a decline in jobs in June for the first time in over four years, consumers' confidence in finding jobs dropping to the lowest since 2013, and revised government data suggesting nonfarm payrolls may have been overstated by 911,000 jobs over the past year.
History
- This story does not have any previous versions.