More Americans are out of work longer, as employers hold back on hiring and firing

America’s job market is in a “hire less, fire less” mode — and even that “fire less” might not last.

According to the US Labor Department, continuing jobless claims — the number of people still collecting unemployment benefits after their first claim — rose to 1.97 million for the week ending June 14, their highest level in more than 3.5 years. Meanwhile, initial jobless claims (a proxy for new layoffs) remained stable.

Taken together, these trends point to a cooling job market: workers aren’t being laid off en masse, but when they are, it’s taking longer to land new roles.

Indeed, job seekers are already feeling the squeeze. Per the latest Conference Board survey, the share of consumers viewing jobs as “plentiful” just fell to a four-year low, and it’s not just a hunch, either. A June report from Indeed Hiring Lab shows that monthly job gains in the US have consistently lagged behind the 2019 average for the past three months. Now, only 52% of sectors are hiring above prepandemic levels, down from ~75% in early 2024.

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