U.S. Jobless Claims Rise to 263,000, Highest in Nearly Four Years

WASHINGTON — Applications for U.S. jobless benefits jumped to 263,000 last week, the highest weekly total since October 2021 and the latest indication that the labor market is softening, the Labor Department reported Thursday.

The number of Americans filing initial claims for unemployment insurance for the week ending Sept. 6 rose by 27,000 from the prior week, topping the 231,000 applications economists had forecast. Weekly claims are widely tracked as a proxy for layoffs.

The four-week moving average, which smooths weekly volatility, increased by 9,750 to 240,500. Continuing claims — the total number of people receiving unemployment benefits for the week of Aug. 30 — remained unchanged at 1.94 million.

Economists note that while weekly initial claims have mostly remained in a historically low range between 200,000 and 250,000 since the U.S. began to emerge from the COVID-19 pandemic nearly four years ago, the recent uptick adds to signs of a cooling labor market amid broader economic uncertainty.

The Labor Department releases the weekly claims report each Thursday; the latest data cover applications filed for the benefit week that ended Sept. 6. The last time filings were this high was the week of Oct. 23, 2021.

Analysts say single-week jumps can reflect temporary factors, such as state-level administrative changes or seasonal hiring shifts, but sustained increases in claims or an upward-trending four-week average would bolster evidence of weakening payrolls. The unchanged level of continuing claims suggests that, for now, the pool of people receiving benefits has not expanded further.

The weekly claims report is closely watched by policymakers and markets for clues about labor-market strength, wage pressures and the path of inflation. Further reports in coming weeks will help determine whether this week's rise represents a short-term swing or the start of a more durable trend.