US unemployment claims hit highest level since 2021

The number of Americans receiving unemployment benefits for over a week rose to 1.97 million in late July, the highest since November 2021. 

According to Labor Department data released Thursday, that’s up from 1.85 million in early January. While new jobless claims increased slightly by 7,000 last week, the spike in continued claims signals trouble.

Hiring slows, job seekers struggle
Fewer layoffs haven’t translated into more jobs. Many unemployed workers struggle to find new positions, and hiring has slowed to near-decade lows outside the pandemic years. 

Glassdoor’s chief economist Daniel Zhao said slower hiring is forcing many to accept lower-paying roles or remain stuck in place.

Policy uncertainty fuels economic caution
Labor experts blame rising tariffs, federal spending cuts, and stricter immigration rules under the Trump administration. New import taxes could further stall business hiring. Federal layoffs are also rising, and a Supreme Court ruling recently greenlit more job cuts.

Last week’s job report showed 258,000 fewer hires than previously reported. Meanwhile, President Donald Trump fired the Bureau of Labor Statistics chief after the data’s release.