Archive · 12 Dec 2025
US Jobless Claims Rise to Four-Year High
The number of Americans applying for unemployment benefits jumped by 44,000 last week, reaching 236,000.
This is the biggest increase since early 2020.
Economists say the job market is in a 'no-fire, no-hire' phase, meaning companies aren't laying off many workers but aren't hiring much either.
The Federal Reserve Chair, Jerome Powell, has warned that the job market might be weaker than the numbers show.
The Fed recently cut interest rates, partly because of concerns about the job market.
Despite the rise in jobless claims, economists aren't too worried, saying the increase is mostly due to seasonal changes.
The stock market reacted with lower trading, and the dollar and Treasury yields fell.
The jobless rate was 4.4% in September, the highest in four years.
Initial jobless claims in the US increased by 44,000 to 236,000 for the week ending Dec. 6, the biggest rise since March 2020.
Economists describe the job market as a 'no-fire, no-hire' environment, with seasonal factors causing volatility in jobless claims.
The Federal Reserve cut its benchmark interest rate by 25 basis points to 3.50%–3.75%, citing significant downside risks in the labor market.
The number of people receiving unemployment benefits dropped by 99,000 to 1.838 million for the week ending November 29, partly due to workers exhausting their benefits.
Despite the rise in jobless claims, economists believe the increase is mostly due to seasonal noise and not a significant change in the underlying job market.
- Who
- Americans filing for unemployment benefits, Federal Reserve Chair Jerome Powell, economists
- What
- Initial jobless claims increased by 44,000, reaching 236,000 for the week ending Dec. 6
- When
- Data released on Thursday, week ending Dec. 6
- Where
- United States
- Why
- Due to seasonal patterns, fewer immigrant workers, tariffs, and companies replacing jobs with AI
Economists
Federal Reserve Chair
Job Market Health
Economists
Economists describe the job market as a 'no-fire, no-hire' environment, with seasonal noise causing volatility in jobless claims.
Federal Reserve Chair
Federal Reserve Chair Jerome Powell warns of significant downside risks in the labor market and potential overstatement of job numbers.
- Initial Jobless Claims
- 236,000 for the week ending Dec. 6
- Increase in Claims
- 44,000
- Expected Claims
- 220,000
- Continuing Claims
- 1.838 million for the week ending November 29
- Unemployment Rate
- 4.4% in September
- Fed Interest Rate Cut
- 25 basis points, target range now 3.50%–3.75%
- Job Gains Revision
- 911,000 fewer jobs added between April 2023 and March 2024
