US Jobless Claims Hit Highest Since COVID Onset, Raising Economic Worries

• US unemployment benefit claims saw their sharpest rise since the COVID-19 pandemic, reaching 236,000 in the week ending December 6.
• The 44,000 increase in claims was the biggest jump since July 2021 and exceeded economists' forecasts of 220,000.
• This surge coincides with nationwide layoffs being the highest in years, sparking concerns about the labor market.
• Some economists advise caution, noting holiday season spikes and suggesting a focus on the four-week average instead of weekly data.
• There are concerns the reported data may undercount actual unemployment, with some workers potentially receiving severance or finding new jobs.

Why It Matters: Rising US unemployment claims signal a potentially worsening economy.