US Jobless Claims Rise to 200,000

The number of Americans filing for unemployment benefits rose slightly last week to 200,000, according to the Labor Department, signaling a softening job market even as layoffs remain at historically low levels.

The report, released Thursday, showed initial claims for the week ending January 17 increased by 1,000 from the previous week's 199,000. That figure came in below economists' expectations of 207,000 applications, as surveyed by FactSet. Jobless claims serve as a key measure of layoffs and provide a near-real-time gauge of labor market conditions.

Broader data underscores a cautious employment landscape. In December, employers added just 50,000 jobs, a figure nearly unchanged from the downwardly revised 56,000 in November, the Labor Department reported earlier this month. The unemployment rate edged down to 4.4 percent, marking its first decline since June, from a revised 4.5 percent in November. Job openings also fell, with businesses and government agencies reporting 7.1 million vacancies at the end of November, down from 7.4 million in October. Layoffs have decreased overall, reflecting a pattern where companies hold onto existing workers while hesitating to hire new...