U.S. Labor Market Enters a "Paralyzed State" as Initial Jobless Claims Slightly Below Expectations

Odaily News The number of Americans filing initial jobless claims rose modestly last week, indicating that while labor demand remains persistently weak, the scale of layoffs at the end of 2025 is still at a relatively low level. Data in recent weeks has been volatile due to seasonal adjustments for year-end holidays, but overall, layoffs remain low by historical standards. Affected by tariff uncertainties and the widespread adoption of artificial intelligence, employers appear hesitant to increase hiring, yet there has been no wave of large-scale dismissals, leaving the labor market in a state of "paralysis." Market focus has now shifted to Friday's upcoming release of the December non-farm payrolls report. Economists expect non-farm payrolls to have increased by 60,000 last month, with the unemployment rate projected to fall to 4.5% from the over four-year high of 4.6% reached in November. It is important to note that the November unemployment data was partially distorted by a 43-day federal government shutdown. (Jin10)