The number of Americans filing for unemployment benefits jumped sharply last week, the biggest increase in nearly four and a half years, but economists say it’s likely seasonal volatility, not a sign that the job market is weakening.
According to the Labor Department, weekly jobless claims rose 44,000 to 236,000 for the week ending December 6, far above expectations of 220,000. Still, experts noted that claims tend to swing during the holiday season and recommended looking at the four-week average, which remains stable at 216,750.
“The bulk of this week’s rise is just seasonal noise,” said Stephen Stanley, chief US economist at Santander US Capital Markets. “The data don’t show real deterioration in the labor market.”
The report comes a day after the Federal Reserve cut interest rates by 25 basis points for the third time this year. Fed Chair Jerome Powell acknowledged risks to employment but said the overall economy remains solid.
Some analysts noted that layoffs announced by big firms like Amazon have not yet translated into higher unemployment filings. “Workers may still be finding new jobs quickly or relying on severance packages,” said Nancy Vanden Houten of Oxford Economics.
The number of Americans continuing to receive jobless benefits fell 99,000 to 1.84 million, suggesting people are still finding work, though some may be running out of eligibility.
Meanwhile, the US trade deficit narrowed 10.9% to $52.8 billion in September, the smallest since 2020, as exports climbed on stronger global demand and a weaker dollar.
Overall, economists say the labor market remains in a “no-fire, no-hire” phase, stable, but showing limited growth, while the broader economy continues to expand at a healthy pace heading into 2026.
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