U.S. Unemployment Claims Surge Amid Economic Uncertainty
By MATT OTT, Associated Press Business Writer
Washington, D.C. — Filings for U.S. unemployment benefits have reached their highest level in eight months, according to the Labor Department. Last week’s applications rose by 8,000 to 247,000, surpassing analysts’ expectations of 237,000. Despite this increase, jobless claims remain historically low, reflecting broader challenges posed by potential economic shifts due to tariffs.
Experts highlight that concerns about President Donald Trump’s tariff policies have led many companies to lower sales and profit forecasts for 2025. Although Trump has reduced some tariff threats, the ongoing uncertainty could disrupt the robust U.S. labor market.
Federal Reserve Chair Jerome Powell cautioned that rising unemployment and inflation present challenges for economic policy. He noted that tariffs have negatively affected consumer and business sentiment. Recent data indicated a decline in job quitting rates and an uptick in layoffs, suggesting a cooling job market.
The Labor Department’s comprehensive employment report, expected soon, predicts modest job growth, with around 130,000 jobs added in May. Meanwhile, the total number of Americans receiving unemployment benefits remains steady at 1.9 million, indicating a mixed outlook for the economy ahead.
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