US Jobless Claims Edge Down, Continued Claims Rise Amid Labor Market Weakness, Rising Unemployment Rates

The US jobless claims have slightly decreased, but continued claims are rising, indicating a potential weakening in the labor market. Employment growth has slowed since the Fed raised rates, causing concerns about prolonged pressure. Unemployment rates in the US have substantially risen, a rare occurrence outside of a recession. Two recession indicators are nearing activation, raising worries despite current investor reassurance. The labor market is showing signs of weakness with collapsing job openings and accelerating job losses, reminiscent of past economic downturns. The spike in job losses is similar to economically volatile periods like the Dot Com bubble, Financial Crisis, and the Pandemic, all of which led to significant economic downturns.