The United States Labor Department data, released on December 11, showed that the number of people applying for unemployment insurance benefits rose to 236,000 for the week ended December 6, amid rising unemployment in the country and a cooling labor market. The Labor Department data highlighted how weekly unemployment insurance claims rose by 44,000 to 236,000, compared to their earlier level of 192,000 in the week ending November 29. According to a recent AP report, applications for unemployment insurance benefits rose more than the analyst-expected levels of 213,000 for the same period. Are more Americans collecting their unemployment benefits? The data released Thursday highlighted that the number of people collecting their unemployment insurance claims on a weekly basis fell for the week ending November 29. Insured unemployment figures fell by 99,000 to 18,38,000 (18.38 lakh) for the period, compared to 19,37,000 (19.37 lakh) in the previous week ended 22 November. According to the news agency’s report, the insured unemployment rates in the US fell to their lowest levels for continued claims since mid-April, earlier this year. People applying for unemployment insurance in America show a real snapshot of the cooling job market and the rising layoffs. Unemployment insurance is a form of temporary assistance given to workers who have lost their jobs for some reason other than their own. The funding for this comes from the employer companies via their payroll taxes. US Unemployment Rates According to the US Bureau of Labor Statistics, the unemployment rate in the US economy jumped to 4.4% for the month of September 2025. However, the country also added 119,000 jobs despite the federal government shutdown during that time. “Total nonfarm payroll employment rose by 119,000 in September, but showed little change from April, the U.S. Bureau of Labor Statistics reported today. The unemployment rate, at 4.4%, was little changed in September,” the Labor Bureau said in its November 20 delayed release. The unemployment data for October and November was also delayed due to the 43-day government shutdown, and the Labor Bureau is scheduled to release the same next week on Tuesday, December 16. The government agency also highlighted that jobs in health care, food services and drinking establishments, along with social assistance, saw an upward trend from the release of September data. However, the economy also recorded job losses in sectors such as transport-warehousing and the federal government. US Fed on labor market The US Federal Reserve’s FOMC decided on December 10 to cut key interest rates for the third consecutive time this year by 25 basis points to the range of 3.50%-3.75% amid increased inflation levels and a cooling labor market. Fed Chairman Jerome Powell said during his media address that the central bank’s decision to lower interest rates is expected to stabilize the labor market amid rising unemployment rates in America. “With today’s decision, we have lowered our policy rate by three-quarters of a percentage point over our last three meetings. This further normalization of our policy stance should help stabilize the labor market while allowing inflation to resume its downward trend toward 2% once the effects of rates have worn off,” Powell said in his speech on Wednesday.