Unemployment Claims Rise Amid Economic Uncertainty

In October, the U.S. labor market remained stable despite a marginal rise in unemployment claims and a surge in layoffs due to economic uncertainty, tariffs, and AI adoption. The ongoing government shutdown has halted official economic data, while analysts rely on estimates and private reports to gauge employment trends.

The U.S. labor market showed signs of stability in October despite a slight increase in unemployment claims, estimated at 229,140, according to Haver Analytics. These figures align with predictions from Citigroup, JPMorgan, and Nationwide, amidst the longest-ever government shutdown halting the release of official data.

While job cuts and layoffs were reported, notably in businesses adopting AI, weekly unemployment claims brought a contrasting perspective, painting a picture of a labor market maintaining a semblance of stability. However, the shutdown has frozen the Labor Department's employment report, leaving sectors reliant on analytics and projections.

Economists note that economic uncertainty, import tariffs, and reduced labor supply due to immigration raids are influencing hiring trends, as seen in small-business surveys. The Federal Reserve, while monitoring stable conditions, may forego altering interest rates next month.

(With inputs from agencies.)