Economic Concerns Rise as U.S. Jobless Claims Surge to Highest Level Since 2021

Initial jobless claims in the United States surged to 248,000 for the week ending June 7, marking the highest level in eight months and surpassing economists’ expectations of 242,000, according to data released Thursday by the Department of Labor. The increase in claims, which comes amid growing economic uncertainty and ongoing trade tensions, has raised concerns about a potential slowdown in the labor market.

Continuing claims, which track the number of Americans still receiving unemployment benefits, also climbed to 1.956 million—the highest figure since November 2021—indicating that more unemployed individuals are struggling to find new jobs quickly. Analysts note that while filings remain historically low compared to the pandemic era, the recent uptick is difficult to dismiss and could signal broader shifts in workforce dynamics as hiring slows and layoffs rise.

Economists attribute part of the increase to seasonal factors, with spikes in claims from states like California and Minnesota, but also point to a softer labor market this year compared to previous years. Recent mass layoffs of federal workers and a slowdown in hiring, particularly in sectors affected by tariffs and trade policy uncertainty, have contributed to the rise in claims.

A separate national employment report found that U.S. job growth slowed in May, with only 37,000 jobs added—the lowest pace since May 2023. The number of Americans quitting their jobs has also declined, while layoffs have increased, further supporting concerns about a cooling labor market.

While experts caution that it is too soon to sound the alarm, they agree that the trend is worth monitoring closely. If continuing claims remain elevated or rise further in the coming weeks, it could point to deeper challenges ahead for the U.S. economy.