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Economy|Business and EconomyUS jobless claims slow in last full week of 2025 amid weak labour marketNovember saw highest unemployment since 2021, largely attributed to federal worker reductions under Trump.

Recent data from the United States Labor Department indicates a decline in unemployment claims to the lowest point in a month. For the week ending on December 27, 2025, jobless claims fell by 16,000 to 199,000, an improvement from the previous week’s…

KBy Kyle MercerDec 31, 20251 min read

Recent data from the United States Labor Department indicates a decline in unemployment claims to the lowest point in a month. For the week ending on December 27, 2025, jobless claims fell by 16,000 to 199,000, an improvement from the previous week’s 215,000 claims. The four-week average of jobless claims increased slightly by 1,750 to 218,750.

The US unemployment rate peaked at 4.6 percent in November 2025, marking the highest level since 2021. This increase is attributed to a significant number of federal employees leaving the workforce following substantial government staffing reductions.

Jobless claims serve as a proxy for layoffs, providing a real-time indicator of the job market's health. The end-of-year holiday season may have influenced the recent data, as a shorter workweek could lead to fewer unemployment filings.

Despite robust economic indicators such as GDP, the US labor market has shown signs of weakening. Since March 2025, average monthly job creation has fallen to 35,000, significantly lower than the previous 12-month average of 71,000.

Recent data from the United States Labor Department indicates a decline in unemployment claims to the lowest point in a month.
Kyle Mercer · Thehackingpost

In response to the labor market conditions, the Federal Reserve has reduced its benchmark lending rate by a quarter-point, marking the third consecutive rate cut. The Reserve anticipates potential downward revisions in job figures, possibly by as much as 60,000.

In October 2025, the US economy experienced a net loss of 105,000 jobs, primarily due to federal workforce reductions. However, November 2025 saw a partial recovery with 64,000 jobs gained.

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Recent announcements of job cuts have come from major corporations, including UPS, General Motors, Amazon, and Verizon.

Based on reporting by Al Jazeera.

AI transparency. This article was produced with the assistance of artificial intelligence and published under human editorial oversight. AI systems can make mistakes. Read how we use AI (EU AI Act, Art. 50).
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