Signal & Spark: Weekly Hiring and Labor Market Report

Justin Press
Feb 5
2 min read

Executive Summary

Jobless benefit claims jumped by about 22,000 to 231,000 this week, the largest increase in two months. Applications for unemployment benefits for the week ending Jan. 31 rose to 231,000 from the previous week.

Employers announced the highest January layoff total since 2009, with more than 108,000 job cuts. Challenger, Gray

& Christmas reported 108,435 planned layoffs in January.

U.S. job openings sank to roughly 6.5 million in December, the lowest level since 2020, signaling weaker labor demand. The Bureau of Labor Statistics reported job openings at a more than five-year low.

1 ) Weekly Labor Market Data

U.S. weekly unemployment claims increased by ~22,000 to 231,000 for the week ending Jan. 31, exceeding expectations but remaining historically moderate.
Data on job openings showed 6.5 million vacancies in December 2025, the lowest since late 2020, reflecting continued softness in employer hiring demand.
The January jobs report release was postponed because of a partial U.S. government shutdown, delaying updated hiring and unemployment rate data.

2 ) Layoffs and Workforce Reductions

Challenger data showed 108,435 planned layoffs in January, marking the highest January total since the 2009 recession and a significant increase compared with last year.
UPS announced plans to cut up to 30,000 jobs this year as part of restructuring and operational changes.
Amazon confirmed a round of about 16,000 corporate job cuts, continuing its broader workforce restructuring initiated last year.
Workday said it will lay off roughly 400 employees mainly from non-revenue roles in its customer support organization.

3 ) Sector and Hiring Activity

Even as openings weakened, some demand for health care and tech specialist roles remains, though overall announcements are muted and employers are cautious.
Various reports linked transportation, tech, and healthcare sectors to the biggest layoff counts, reflecting sector-specific workforce decisions.
Local and sector hiring initiatives (calendar events, district job fairs, etc.) continue, though no major national hiring data releases occurred this week.

4 ) Signals and Market Context

The labor market showed a “low-hire, low-fire” pattern, with layoffs rising but unemployment claims still not at recession-level extremes.
Weak job openings, increasing claims, and higher layoff counts in January suggest cautious hiring plans among employers.
The delayed January employment report will be a key data point to confirm how recent trends are affecting broader hiring and unemployment figures.

5 ) What’s Next

Await the January jobs report release (now rescheduled to next Thursday) for clearer insights into hiring and unemployment trends.
Watch for continued reports from private payroll and layoff trackers for near-term signals as official government data lags.
Monitor industry hiring intentions (especially in healthcare, logistics, and AI-adjacent roles) for pockets of strength amid broader caution.