The U.S. labor market remains in a stagnant state as job cuts continue to be low despite weak labor demand. Last week's slight rise in new unemployment insurance claims reflects this trend, with layoff levels staying low by historical standards. Seasonal adjustments for the holiday period have caused fluctuations in the data, but employers remain cautious about hiring due to uncertainties over tariffs and the spread of artificial intelligence.
Attention is now focused on the upcoming nonfarm payrolls report for December, expected to show an increase of 60,000 jobs. The unemployment rate is anticipated to decrease from November's four-year high of 4.6% to 4.5%, a figure affected by the recent 43-day federal government shutdown.
U.S. Labor Market Stagnant as Job Cuts Remain Low
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