Washington D.C. – New data released by the Labor Department shows a notable increase in the number of Americans filing for unemployment benefits, reaching an eight-month high. For the week ending May 31, 2025, initial jobless claims rose by 8,000 to a seasonally adjusted 247,000.
The four-week moving average of claims, which smooths out week-to-week volatility, also climbed by 4,500 to 235,000, its highest point since late October.
While initial claims are up, the total number of Americans continuously receiving unemployment benefits saw a slight decrease. For the week ending May 24, continuing claims fell by 3,000 to 1.9 million.
Economists are pointing to a combination of factors to explain the upward trend in new claims. Some analysts suggest that seasonal adjustments around the Memorial Day holiday and the end of the school year may have contributed to the increase.
However, a significant point of discussion is the economic uncertainty stemming from President Donald Trump’s recent tariff announcements. Throughout 2025, the administration has implemented a series of tariffs, including a notable increase in tariffs on steel and aluminum to 50% in early June. These measures, aimed at protecting domestic industries, have been met with mixed reactions and have led many companies to express caution regarding their sales and profit forecasts for the remainder of the year. Some businesses have cited this tariff-induced uncertainty as a reason for a slowdown in hiring and, in some cases, layoffs.
The Federal Reserve has acknowledged the complex economic environment, with officials noting that uncertainty around trade policy could pose risks to the labor market. While the unemployment rate has remained historically low, this recent uptick in jobless claims will be closely monitored for signs of a cooling labor market.
Bias Comparison
Left: Left-leaning commentary has quickly connected the rise in jobless claims to the direct consequences of the Trump administration’s trade policies. These outlets emphasize the negative impact on workers and the economic instability caused by the tariffs. They often highlight the perspectives of economists and think tanks that project a slowdown in GDP growth and an increase in consumer costs due to the tariffs. The narrative focuses on the idea that the administration’s “America First” trade agenda is leading to job losses and hurting the same workers it purports to protect. The slight decrease in continuing claims is often downplayed in favor of the more alarming rise in initial applications for benefits.
Center: Centrist and mainstream news sources have reported the jobless claims figures straightforwardly, presenting the data from the Labor Department and offering a balanced view of the potential causes. These reports typically include quotes from various financial analysts, some of whom attribute the increase to seasonal factors, while others point to the uncertainty created by the administration’s tariff policies. The focus is on the data itself as a key economic indicator, and there is an effort to avoid definitive conclusions about the sole cause of the increase. The decrease in continuing claims is usually mentioned alongside the rise in initial claims to provide a complete picture of the labor market.
Right: Right-leaning coverage has tended to downplay the significance of the eight-month high in jobless claims. These sources are more likely to emphasize that the overall number of claims remains historically low. They often highlight the possibility of seasonal fluctuations and other non-policy-related factors contributing to the weekly increase. The narrative frequently points to the necessity of the tariffs to protect American industries and jobs in the long run, framing any short-term negative effects as a necessary adjustment. The decrease in the total number of people receiving benefits is often given more prominence as a sign of underlying economic strength. There is also a focus on other positive economic indicators to contextualize the jobless claims data as a minor fluctuation rather than a sign of a weakening economy.
