In the week ending May 31, 2025, initial applications for U.S. unemployment benefits rose to 247,000, marking the highest level in eight months and exceeding economists' expectations of 235,000, according to recent data. Despite this increase, the total number of Americans receiving unemployment benefits for the week of May 24 decreased slightly to 1.9 million. 

Economists suggest that the uptick in jobless claims may indicate broader shifts in the workforce, particularly as hiring rates weaken. Factors contributing to this trend include tariff-related uncertainties and significant federal workforce reductions. Notably, the Department of Government Efficiency (DOGE) has overseen the termination of over 280,000 federal employees in 2025. 

"Moreover, a relatively weak hiring rate means that the share of newly unemployed workers who are struggling to find a new job quickly is slowly creeping up, too," Oliver Allen, senior U.S. economist at Pantheon Macroeconomics, said in an email note to CBS News. "The further downward pressure on hiring from tariff-related uncertainty will add to these growing strains on the jobs market."

While jobless claims have generally remained within a historically healthy range of 200,000 to 250,000 since the COVID-19 pandemic, the recent rise is seen as a potential early sign of labor market softening. Analysts emphasize the importance of monitoring this trend, though they caution that it's too early to predict a significant downturn. 

"Jobless claims continue to rise, but they are rising at a slow pace, so it's a trend worth watching, but too soon to sound the alarm," Chris Zaccarelli, chief investment officer for Northlight Asset Management, told CBS News. 

The Labor Department's comprehensive employment report for May is anticipated to provide further insights into the state of the job market.