US Jobless Claims Edge Up, Labor Market Shows Weakness Despite Low Layoffs

• US jobless claims rose slightly to 2,08,000 in the last week of 2025, but remain historically low.
• Despite low claims, the labor market shows signs of weakening, with a 'low hire, low fire' trend.
• Job creation has slowed significantly, averaging 35,000 a month since March, down from 71,000.
• Unemployment rate climbed to 4.6%, highest since 2021, influenced by Trump's tariffs and Fed's high interest rates.
• Federal Reserve cut lending rates to stabilize the softening market; companies like UPS, Amazon announced layoffs.

Why It Matters: US labor market faces mixed signals: low jobless claims but underlying weakness and slowing job growth.