US unemployment claims rise but remain at healthy level

WASHINGTON (AP) — U.S. applications for unemployment benefits rose last week, but layoffs remain at historically healthy levels.

The Labor Department reported Thursday that 209,000 people filed jobless claims last week, up from a revised 200,000 the week before and higher than the 205,000 forecasters had expected. The four-week average of applications, which smooths out week-to-week-volatitlity, was unchanged at 199,000.

Claims for jobless benefits are a proxy for layoffs, and they've been at a historically low range of around 200,000 to 230,000 a week for the past year, suggesting that Americans who have jobs enjoy unusual job security. The U.S. unemployment rate is low at 4.1%.

The story is less encouraging for those trying to break into the job market and for those who lost their jobs and are looking for new work. Companies, scarred by worker shortages that followed the end of COVID-19 lockups four to five years ago, are reluctant to let go of staff; but they aren't eager to take on new workers. Economists regularly refer to a "no hire, no fire'' job market.

Last month, in fact, companies, government agencies and nonprofits together cut 23,000 jobs instead of increasing them, the Labor Department reported last week. So far this year, employers are adding 61,000 jobs a month. That is an improvement on the 9,700 they averaged last year — the weakest hiring outside a recession since 2002. The lingering effects of high interest rates and President Donald Trump's erratic trade policies discouraged companies from hiring in 2025.

Still, hiring this year remains well below the 166,00 monthly jobs created, on average, in 2023 and 2024, let alone the 491,000 a month recorded during the 2021-2022 hiring boom that followed pandemic lockdowns.