The United States Department of Labor data, released on 11 December, shows that the number of people applying for unemployment insurance benefits jumped to 236,000 for the week ending 6 December, amid rising unemployment in the country and a cooling labour market.
The Labor Department data highlighted how the weekly unemployment insurance claim applications surged by 44,000 to 236,000, compared to their earlier level of 192,000 in the week ended 29 November.
According to a recent AP report, unemployment insurance benefit applications rose more than the analyst-expected levels of 213,000 for the same period.
Are more Americans collecting their jobless benefits?
The data released on Thursday highlighted that the number of people collecting their unemployment insurance claims on a weekly basis dropped for the week ending 29 November.
The insured unemployment numbers dropped by 99,000 to 18,38,000 (18.38 lakh) for the period, compared to 19,37,000 (19.37 lakh) in the previous week ended 22 November.
According to the news agency’s report, the insured unemployment numbers in the US dropped to their lowest levels for continuing claims since mid-April, earlier this year.
People applying for unemployment insurance in America show a real snapshot of the cooling labour market and the rising layoffs.
Unemployment insurance is a form of temporary aid given to workers who have lost their jobs for some reason other than their own. The funding for the same comes through the employer companies via their payroll taxes.
US unemployment rates
According to the US Bureau of Labor Statistics, the unemployment rate in the US economy jumped to 4.4% for the month of September 2025. However, the country also added 119,000 jobs despite the federal government shutdown during the time.
“Total nonfarm payroll employment edged up by 119,000 in September but has shown little change since April, the U.S. Bureau of Labor Statistics reported today. The unemployment rate, at 4.4%, changed little in September,” said the Labor Bureau in its delayed release on 20 November.
The unemployment data for October and November has also been delayed due to the 43-day government shutdown, and the Labor Bureau is scheduled to release the same next week on Tuesday, 16 December.
The government agency also highlighted that jobs in healthcare, food services and drinking places, along with social assistance, witnessed an uptrend as of the September data release. However, the economy also recorded job losses in sectors such as transportation-warehousing and the federal government.
US Fed on labour market
The US Federal Reserve’s FOMC on 10 December decided to cut the key interest rates for the third consecutive time this year by 25 basis points to the range of 3.50%-3.75% amid elevated inflation levels and a cooling labour market.
Fed Chairman Jerome Powell, during his media address, said that the central bank’s decision to cut interest rates is expected to stabilise the labour market amid the rising unemployment numbers in America.
“With today’s decision, we have lowered our policy rate three-quarters of a percentage point over our last three meetings. This further normalisation of our policy stance should help stabilise the labour market while allowing inflation to resume its downward trend toward 2% once the effects of tariffs have passed through,” said Powell in his speech on Wednesday.