Rising Unemployment Claims Indicate Economic Turmoil Amid U.S. Tariffs
Unemployment claims in the U.S. have risen for the second consecutive week, reflecting economic challenges from tariffs. The increase in claims, along with company layoffs and reduced hiring due to tariff-related uncertainties, signifies a weakening labor market. Analysts forecast higher claims due to seasonal adjustment difficulties.
- Country:
- United States
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.)
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- Federal Reserve
- hiring
- job cuts
- U.S.
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