Number of Unemployed Claimants Hits 1.9M, Most Since Nov 2021 [Video]

The number of Americans collecting unemployment benefits rose to 1.9 million last week, the highest level since November 2021, according to data released by the Labor Department on Thursday.

Why It Matters

This increase highlights potential challenges in the labor market, even as job growth remains robust and layoffs remain low by historical standards. Applications for unemployment benefits also rose modestly.

While the labor market remains tight, with unemployment at just 4.1 percent as of December, the increase in continuing claims signals a potential softening in job demand as higher interest rates begin to take effect. The Federal Reserve has raised rates substantially since 2022, slowing inflation but also weighing on hiring decisions in some industries.

What to Know

Applications for unemployment benefits, considered a proxy for layoffs, rose by 6,000 to 223,000 for the week ending January 18, …