Last week, the number of Americans applying for unemployment benefits for the first time reached a seven-month high, suggesting that labour market conditions are improving despite growing economic pressures from tariffs.
The Labour Department’s report released Thursday also showed that workers who have lost their jobs are finding it difficult to find new ones as firms are unwilling to hire more people due to the uncertainty created by President Donald Trump’s aggressive trade strategy.
Economists believe the second consecutive weekly spike in jobless claims may have been caused by technical issues modifying the data at the beginning of the summer. Nevertheless, they claim that the data provided some indication of labour market pressures.
Nancy Vanden Houten, chief U.S. economist at Oxford Economics, stated, “We won’t discount the increase in claims over the past two weeks, which may be a sign of deteriorating labour market conditions in reaction to the Trump administration’s tariff policies and uncertainty.” Seasonal peculiarities, however, may have contributed to the increase.
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