Is the US labor market losing its balance? A jump of 11,000 in new jobless claims last week pushed the total to 235,000 — the highest since mid-June and well above consensus expectations. Continuing claims hit 1.97 million, marking their highest level in nearly four years and signaling that laid-off workers are taking longer to find new jobs. While the current level of layoffs is historically modest, the direction is clear: Job growth is slowing, and unemployment is creeping up. July saw just 73,000 new jobs — not only a miss, but a figure haunted by massive downward revisions for May and June.
Economists point to a mix of factors: Trump’s aggressive trade tariffs raising costs and employer caution, federal layoffs cutting government employment, and cooling consumer demand. Sputtering hiring means workers are finding it harder to land new roles — a trend especially visible outside the AI-fueled tech sector.
