The U.S. job market shows signs of fatigue, with the number of people receiving unemployment benefits reaching a new high since the end of 2021.

The number of continuing jobless claims in the United States has skyrocketed to the highest level since November 2021, further indicating a weakening labor market. According to data released by the US Department of Labor on Thursday, the number of continuing jobless claims increased by 38,000 to reach 1.97 million people in the week ending July 26, exceeding market expectations. The number of initial jobless claims in the United States rose to 226,000 in the week ending August 2, slightly higher than market expectations. The increase in continuing jobless claims indicates that unemployed individuals are facing more difficulties in finding new jobs. Nevertheless, the overall number of new applicants for unemployment benefits remains relatively low this year, indicating that while businesses are reducing their hiring, they are also largely retaining their existing employees. The number of continuing jobless claims in the United States has reached the highest level since the end of 2021. Investors and economists remain highly alert to any signs of further deterioration in the labor market, as the previously released July nonfarm payroll report showed a much lower number of new job positions than originally expected. The report significantly revised down the data for May and June, prompting US President Donald Trump to dismiss the Bureau of Labor Statistics director, raising expectations in the market for a rate cut by the Federal Reserve at the next policy meeting in September. Over the past few months, due to the uncertainty surrounding Trump's economic policies, businesses have become more cautious in their personnel decisions, leading to a slowdown in job growth. Overall, the scale of layoffs this year remains relatively low. However, some large companies have recently announced layoff plans, such as Merck and Intel. Stanford University also plans to lay off more than 300 people, becoming one of the schools announcing layoffs due to federal funding cuts. Another set of data released on Thursday shows that labor productivity in the United States in the second quarter has rebounded in sync with economic growth, rekindling the trend of efficiency improvement, which helps to mitigate wage-related inflation pressures.