Rising Unemployment Claims Indicate Economic Turmoil Amid U.S. Tariffs

In a sign of further economic strain, the number of Americans filing for unemployment benefits rose for the second consecutive week, as reported by the Labor Department. This uptick suggests a softening labor landscape exacerbated by economic pressures from tariffs.

Though businesses are generally retaining staff following pandemic-induced labor shortages, some are resorting to layoffs amid uncertainty stemming from former President Trump's tariff policies. According to the Federal Reserve's Beige Book, many districts have delayed hiring, reporting decreased demand for labor.

The Institute for Supply Management noted steady employment in services, yet revealed heightened focus on job vacancies. Economists suggest unemployment claims may surpass the anticipated range for 2025, largely due to seasonal data adjustment issues. Meanwhile, announcements of job cuts have increased significantly compared to last year, though they fell from April's figures.

(With inputs from agencies.)