New applications for U.S. unemployment benefits fell last week, signaling that layoffs remain low even as the labor market continues to struggle with creating enough openings for job seekers amid ongoing economic uncertainty.
Initial jobless claims dropped by 6,000 to a seasonally adjusted 216,000 for the week ending November 22, the Labor Department reported on Wednesday. Economists surveyed by Reuters had expected a higher total of 225,000 claims.
The report was published one day earlier than usual due to the Thanksgiving holiday. According to economists, President Donald Trump’s firm stance on trade and immigration has contributed to a hiring environment where many businesses remain cautious, creating what they describe as a “no hire, no fire” labor market.
Some companies, including Amazon, have begun expanding job cuts as they integrate artificial intelligence into certain roles. Analysts expect these layoffs to start appearing in unemployment claims data next year, although historically jobless filings have not always aligned with announced workforce reductions.
The number of Americans receiving unemployment benefits after their first week of aid—often viewed as a measure of hiring strength—rose by 7,000 to a seasonally adjusted 1.960 million for the week ending November 15. These continuing claims cover the same period in which the government conducts its household survey for November’s unemployment rate.
The government recently extended the data collection window for November’s employment report, including for nonfarm payrolls, following the conclusion of the 43-day federal shutdown.
November’s employment report will be released on December 16, and will also include October’s nonfarm payroll data. However, there will be no unemployment rate for October, as the prolonged shutdown prevented officials from gathering the necessary household survey information.
Last week, the government reported that the unemployment rate rose to 4.4% in September, up from 4.3% in August.
