The number of initial unemployment claims in the United States reaches nearly a four-year high, strengthening expectations of an interest rate cut by the Federal Reserve in September.

Last week, the number of initial jobless claims in the United States surged to the highest level in nearly four years. This phenomenon indicates that layoffs may be intensifying amidst a significant slowdown in hiring activities. Data released by the US Department of Labor on Thursday showed that in the week ending September 6, the number of initial jobless claims increased by 27,000 to reach 263,000, the highest since October 2021. The median expectation among economists was 235,000. Prior to this data release, the monthly employment report released on September 5 showed that the US only added 22,000 jobs in August, continuing the trend of significant slowdown in job growth. Uncertainty surrounding Trump's economic policies has made employers more cautious in hiring for 2025. A survey released on Monday by the New York Fed showed that consumer confidence in finding jobs in August dropped to its lowest level since June 2013. Weekly initial jobless claims data usually fluctuate greatly during holidays, and this week's data coincided with Labor Day weekend. As an important indicator to smooth short-term fluctuations, the four-week moving average of initial jobless claims rose to 240,500, the highest since June. The abnormal increase in Texas pushed up the overall data, with the unadjusted number of initial jobless claims in the state surging by 15,304. Michigan followed with an increase of 2,980, while most states saw a decline in claims. Additionally, in the week ending August 30, the number of continued jobless claims (reflecting the size of those currently receiving unemployment benefits) remained at 1.94 million, unchanged from the previous week. Bloomberg economist Eliza Winger said, "The sharp increase in initial jobless claims in the first week of September was mainly driven by Texas, while most states actually saw a decline in claims. While the weak trend in the labor market is becoming increasingly apparent, any deterioration in the labor market is a cause for concern; if initial jobless claims rise more broadly, the situation will be more worrisome." The data released on Thursday is the last crucial report on the US labor market conditions that the market can obtain before the Fed's policy meeting on September 16-17. The Fed has maintained interest rates unchanged throughout the year to guard against inflation risks; however, with growing concerns about employment issues in the market, it is widely expected that the Fed will resume cutting rates. Another data released on the same day showed that the core Consumer Price Index (CPI), excluding food and energy prices, rose by 0.3% in August, in line with the median economist expectations.