U.S. Jobless Claims Rise to 235,000, Highlighting Labor Market Weakness

The number of Americans filing for first-time unemployment benefits rose more than expected last week, underscoring fresh signs of strain in the U.S. labor market amid ongoing tariff-related economic uncertainty.

For the week ending August 16, seasonally adjusted jobless claims climbed to 235,000, up from 224,000 the previous week and exceeding economists’ forecasts of 226,000. The more stable four-week moving average also increased to 226,250 from 221,750, suggesting a broader softening trend.

This latest uptick adds to mounting evidence of a cooling labor market. Earlier this month, the July jobs report showed slower-than-expected job growth, a higher unemployment rate, and labor force participation slipping to its lowest level since late 2022. Additionally, May and June job figures were revised sharply lower, erasing more than 250,000 previously reported gains.

Meanwhile, minutes from the Federal Reserve’s July meeting indicated broad support for keeping interest rates unchanged. However, that decision came before the weak July labor data, intensifying market focus on Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole symposium on Friday. Powell’s remarks will be closely watched as his current term ends next May.

The Fed has kept its benchmark rate steady at 4.25%–4.50% since December, but markets now widely expect a rate cut at the September policy meeting to counter slowing job growth and broader economic headwinds.