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US applications for jobless benefits skyrocketed last week continuing trend of increase

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Applications for jobless aid for the week ending Jan. 31 rose by 22,000 to 231,000 from the previous week, the Labor Department reported Thursday. That’s significantly more than the 211,000 new applications that analysts surveyed by the data firm FactSet had forecast.

Applications for unemployment benefits are seen as representative of U.S. layoffs and are close to a real-time indicator of the health of the job market.

A number of high-profile companies have announced job cuts in the past year, including UPS, Amazon and Dow just last week.

Mounting layoff announcements in the past year, combined with the government’s own sluggish labor market reports, has left Americans increasingly pessimistic about the economy.

Last month, the government reported that hiring remained subdued in December, capping a year of weak employment gains that have frustrated job seekers. Employers added just 50,000 jobs last month, nearly unchanged from a downwardly revised figure of 56,000 in November, according to the Labor Department.

The 2025 numbers represent the smallest annual job gains since the COVID-19 pandemic decimated the job market in 2020. Outside of recessions, it’s the slimmest annual increase since 2003.

The Labor Department also recently reported that businesses posted far fewer jobs in November than the previous month, a sign that employers aren’t yet ramping up hiring.

https://abcnews.go.com/Business/wireStory/us-applications-jobless-benefits-jump-22000-231000-week-129880470