U.S. Labor Market Update: Rising Jobless Claims, Steady Hiring, and Growing Caution

241,000

U.S. weekly jobless claims rose sharply by 18,000 to 241,000, the highest level since August 2023, signaling a softening labor market. The number of people continuing to receive benefits surged by 83,000 to 1.916 million, the highest since November 2021. Economists suggest this uptick reflects broader hiring slowdowns as businesses respond to uncertainty and rising input costs.

177,000

In April 2025, U.S. employers added 177,000 jobs, surpassing expectations, while the unemployment rate remained steady at 4.2%. Job growth was notable in healthcare (+51,000) and transportation and warehousing (+29,000) sectors, indicating resilience despite economic uncertainties. However, federal government employment declined by 9,000, reflecting ongoing cost-cutting measures. Average hourly earnings increased by $0.06 to $36.06, marking a 3.8% rise over the past year, suggesting moderate wage growth amid stable labor market conditions.

9.2M

In April 2025, the U.S. labor market showed signs of balance, with approximately 9.2 million job openings and 9.4 million unemployed persons, resulting in a ratio of 1.02 unemployed persons per job opening. This marks the lowest ratio since April 2021, indicating a tightening labor market. The data suggests that while job opportunities remain abundant, the number of job seekers is also high, reflecting a competitive employment landscape.

45%

In April 2025, Glassdoor's employee confidence index dipped to 45%, marking a record low, as workers expressed heightened anxiety amid a cooling labor market and recession concerns. Notably, only 35% of federal employees reported a positive outlook, down from 44% the previous year. This decline is attributed to factors such as increased management assertiveness and a resurgence of performance-based evaluations, contributing to a pervasive sense of uncertainty among the workforce.

7.2M

In March 2025, U.S. job openings fell to 7.2 million, the lowest level since September 2024, reflecting a decline from 7.5 million in February. This drop suggests a cooling labor market, with the ratio of job openings to unemployed persons decreasing to 1.1, the lowest since April 2021. Despite this, 3.3 million workers voluntarily quit their jobs, indicating continued confidence in the labor market. The decline in job openings is attributed to factors such as trade uncertainties and increased tariffs, leading businesses to adopt a cautious approach to hiring.