US labour market trend: Jobless claims surge to 236,000; Fed flags deeper hiring weakness

US applications for unemployment benefits rose sharply last week, although filings remain within the historically low range seen in recent years despite growing concerns over labour-market momentum.The Labor Department said on Thursday that jobless claims for the week ending December 6 increased by 44,000 to 236,000, up from 192,000 in the previous week and exceeding analyst expectations of 213,000 new filings. AP reported that the prior week’s reading was likely distorted by the Thanksgiving holiday.Unemployment-aid applications are widely viewed as a proxy for layoffs and provide one of the timeliest indicators of labour-market conditions. While headline claims remain relatively low, the Federal Reserve on Wednesday cut its benchmark lending rate for the third consecutive time, citing worries that the job market is weaker than headline data suggests.Fed Chair Jerome Powell said the central bank moved to ease borrowing costs because hiring appears far softer than reported. Although government figures show the economy has added an average of 40,000 jobs per month since April, Powell noted these numbers “could be revised lower by as much as 60,000,” indicating employers may actually have shed around 20,000 jobs a month.“It’s a labor market that seems to have significant downside risks,” Powell said. “People care about that. That’s their jobs.”Despite muted layoffs, hiring has also slowed, creating what economists describe as a “low-hire, low-fire” environment that has kept unemployment historically low but made job searches increasingly difficult.Private payrolls firm ADP last week estimated 32,000 job losses in November, aligning with recent federal data showing a marked drop in job creation following President Donald Trump’s sweeping tariffs imposed in April. While September posted a gain of 119,000 jobs, June and August recorded net losses. The unemployment rate has edged up to 4.4%, the highest in four years.Comprehensive federal jobs data for November has been delayed until next week due to the government shutdown.Recent job-cut announcements by large companies — including UPS, General Motors, Amazon and Verizon — typically take time to filter into weekly claims figures.The number of Americans receiving unemployment benefits for the week ending November 29 fell by 99,000 to 1.84 million, the lowest since mid-April, though analysts said the drop reflects seasonal adjustments and the lapse of eligibility for many long-term unemployed workers.The four-week moving average of claims, which smooths weekly volatility, rose slightly by 2,000 to 216,750.