New applications for unemployment benefits in the United States rose slightly last week, but were still lower than expected. This suggests that the labor market remained stable in January.
While the claims data appeared volatile due to seasonal adjustments, economists described the labor market as a “low hiring, low layoffs” phase.
Tighter trade and immigration policies, as well as heavy investments in AI, have caused companies to be cautious in hiring, thus suppressing employment growth.
The claims data is in line with the nonfarm payrolls report that showed modest job gains in December, about the same as the 2025 monthly average.
The annual revision by the BLS is expected to reveal a slowdown in job growth that began in 2024, partly due to weaknesses in existing employment estimation models.
At the same time, the GDP data showed the US economy growing stronger than expected, reinforcing confidence in the resilience of the US economy.
