US Labor Market Weakens: Unemployment Claims Rise Amid Caution and AI Adoption

• US unemployment claims rose by 8,000 to 208,000 for the week ended December 27, indicating a weaker labor market.
• Employers are cautious due to tariff uncertainty and AI adoption, leading to low layoffs but also weak hiring.
• Hiring plans for 2025 fell 34% to 507,647, the lowest since 2010, raising concerns about longer unemployment spells.
• Continuing unemployment benefits recipients increased by 56,000 to 1.914 million in the week ended December 20.
• Job openings hit a 14-month low in November, with only 0.91 vacancies per unemployed person, the lowest since March 2021.

Why It Matters: The US labor market is weakening with rising unemployment claims and cautious hiring due to economic uncertainty and AI.