New filings for unemployment benefits rose slightly last week, coming in below expectations and reinforcing signs of a labor market characterized by low hiring and low layoffs.
By yourNEWS Media Newsroom
New applications for unemployment benefits in the United States increased marginally last week, indicating that job growth continued at a modest and steady pace in January despite ongoing economic uncertainty.
Initial claims for state unemployment benefits rose by 1,000 to a seasonally adjusted 200,000 for the week ended January 17, according to data released Thursday by the U.S. Department of Labor. Economists surveyed by Reuters had forecast 210,000 claims for the period.
Recent claims data have been volatile, in part because of difficulties adjusting for seasonal fluctuations around the year-end holidays and the start of the calendar year. Even so, economists and policymakers say the broader trend reflects what has been described as a “low-hiring, low-firing” labor market, with relatively few layoffs but also restrained job creation.
Economists attribute the subdued pace to several factors, including trade and immigration policies under President Donald Trump, which they say have affected both labor supply and demand. Businesses are also reassessing staffing needs as they increase investment in artificial intelligence, a shift that has contributed to cautious hiring.
The weekly claims figures cover the period during which the government surveys employers for the nonfarm payrolls component of the monthly employment report. Nonfarm payrolls rose by 50,000 jobs in December, roughly matching the monthly average recorded throughout 2025.
Attention is now turning to the Bureau of Labor Statistics annual payroll benchmark revision, scheduled for release with January’s employment report next month. The revision is expected to confirm that job growth began losing momentum in 2024. The agency has previously estimated that about 911,000 fewer jobs were created in the 12 months through March 2025 than originally reported.
Officials have attributed much of the overcounting to the BLS’s birth-death model, which estimates employment changes resulting from business openings and closures. Beginning with the January report, the agency plans to modify the model by incorporating more current sample data on a monthly basis.
Meanwhile, the number of people continuing to receive unemployment benefits after an initial week of aid declined by 26,000 to a seasonally adjusted 1.849 million during the week ended January 10. Economists note that part of the drop may reflect individuals exhausting their eligibility for benefits, which are capped at 26 weeks in most states.
Surveys of consumers suggest that displaced workers are facing increasing difficulty securing new employment, reinforcing concerns that job searches are becoming more prolonged even as layoffs remain relatively limited.
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