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The number of initial unemployment claims in the United States dropped last week, with layoffs remaining low.
BlockBeats News, August 28th, the initial jobless claims in the United States last week declined slightly, but weak job growth may push the August unemployment rate to 4.3%. Labor Department data released on Thursday showed that the seasonally adjusted state unemployment insurance initial claims decreased by 5,000 to 229,000 people in the week ending August 23rd. Driven by U.S. President Trump's protectionist trade policy, the U.S. average import tariffs have reached the highest level in a century, causing the labor market to stall in a "neither hiring nor firing" dilemma. A report from the U.S. government in early August showed that the average monthly employment growth in the past three months was 35,000, far below the 123,000 in the same period in 2024. Domestic demand has also slowed significantly, partly due to tariff policies. Federal Reserve Chairman Powell hinted last week that the Fed may cut interest rates at the September policy meeting to address rising labor market risks, but he also emphasized that the threat of inflation still exists. (FX Street)
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