The US labor market is in a "numb state" with initial jobless claims slightly below expectations

Odaily Planet Daily reported that last week, the number of Americans filing for unemployment benefits slightly increased, indicating that despite continued weak labor demand, the scale of layoffs by the end of 2025 remains relatively low. Due to seasonal adjustments for the year-end holiday period, recent data has shown fluctuations, but overall, the number of layoffs remains low by historical standards. Uncertainty around tariffs and the proliferation of artificial intelligence have caused employers to hesitate in hiring, but there has not been a large-scale wave of dismissals, leading the labor market into a state of “numbness.” The market’s current focus has shifted to the upcoming release of the December non-farm payroll report on Friday. Economists expect that non-farm employment increased by 60,000 last month, and the unemployment rate is expected to fall back from the over four-year high of 4.6% touched in November to 4.5%. It is worth noting that the unemployment rate data for November was partially affected by a federal government shutdown lasting up to 43 days. (Jin10)