US Weekly Jobless Claims Rose More Than Expected
By Reuters | 05 Feb, 2026

New unemployment benefits applications rose to 231,000 for the week ending December 31, 2025.

The number of Americans filing new applications for unemployment benefits increased more than expected last week, likely boosted by snowstorms across much of the country, but labor market conditions remain stable. 

Initial claims for state unemployment benefits jumped 22,000 to a seasonally adjusted 231,000 for the week ended January 31, the Labor Department said on Thursday. 

Economists polled by Reuters had forecast 212,000 claims for the latest week. Heavy snow and freezing temperatures blanketed large portions of the country towards the end of January, which could have left some people unemployed temporarily.

Claims are also likely rising as the volatility at the turn of the year washes out of the data. Through the distortions, the labor market remains in what economists call a "low hire, low fire" mode, despite recently announced layoffs by United Parcel Service and Amazon.com. 

Economists have blamed the labor market stasis on uncertainty stemming from import tariffs and the growing popularity of artificial intelligence, which they say has left businesses unsure of their staffing needs as they deploy more resources towards AI. They are cautiously optimistic job growth will pick up this year as tax cuts underpin consumer spending.

The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, increased 25,000 to a seasonally adjusted 1.844 million during the week ended January 24, the claims report showed. 

The claims data have no bearing on January's employment report, which will be released next Wednesday. The report, initially scheduled for Friday, was delayed by the recently ended three-day shutdown of the federal government. 

Economists' estimates for nonfarm payrolls are currently converging around an increase of 70,000 jobs. Payrolls rose by 50,000 jobs in December.

The unemployment rate is forecast to have held steady at 4.4%. Economists say labor market stability could encourage the Federal Reserve to keep interest rates unchanged through the first half of the year. The U.S. central bank last week left its benchmark overnight interest rate in the 3.50%-3.75% range.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)