The US labor market is in a state of "paralysis," with initial jobless claims slightly lower than expected.

U.S. initial jobless claims rose modestly last week, indicating that despite continued weak labor demand, layoffs by the end of 2025 remain relatively low. While data has fluctuated in recent weeks due to seasonal adjustments for the year-end holidays, overall, layoff numbers remain low by historical standards. Employers have been hesitant to increase hiring due to tariff uncertainties and the growing prevalence of artificial intelligence, but a large-scale wave of layoffs has not occurred, leaving the labor market in a state of "paralysis." Market focus has now shifted to Friday's December non-farm payrolls report. Economists expect non-farm payrolls to increase by 60,000 last month, and the unemployment rate is expected to fall to 4.5% from a more than four-year high of 4.6% reached in November. It should be noted that the November unemployment rate data was partially disrupted by the 43-day federal government shutdown. (Jinshi)