U.S. Jobless Claims Rise Slightly Despite Trade Tensions

10 Apr at 9:26 am

2970 posts

U.S. Jobless Claims Rise Slightly Despite Trade Tensions/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Jobless claims in the U.S. rose slightly to 223,000 last week, falling short of economists’ expectations amid trade war concerns. Despite the uptick, the labor market remains strong with robust job creation and minimal layoffs. Federal workforce cuts loom, but haven’t yet impacted unemployment data.

FILE – Hiring sign is displayed outside of a retail store in Vernon Hills, Ill., on Nov. 13, 2021. Fewer Americans applied for jobless aid last week with the number of Americans collecting unemployment at historically low levels. Applications for unemployment benefits fell by 11,000 to 200,000 for the week ending May 28, the Labor Department reported Thursday, June 2, 2022. First-time applications generally track the number of layoffs. (AP Photo/Nam Y. Huh, File)

U.S. Labor Market Resilience: Quick Looks

Jobless benefit applications increased by 4,000 to 223,000 for the week ending April 5.
Numbers came in below analyst forecasts of 225,000, signaling continued labor market strength.
Weekly claims remain within the 200,000–250,000 range seen over recent years.
U.S. employers added 228,000 jobs in March, with unemployment rising slightly to 4.2%.
Trump’s 90-day tariff pause temporarily eases economic pressure from the trade war.
Federal job cuts planned under Elon Musk-led “DOGE” initiative may affect future data.
Agencies including HHS, IRS, VA, and Education Department face looming layoffs.
High-profile corporate layoffs include Meta, Starbucks, CNN, and Southwest Airlines.
Four-week jobless claims average remained unchanged at 223,000.
Continued unemployment claims fell by 43,000 to 1.85 million for the week ending March 29.

U.S. Jobless Claims Rise Slightly Despite Trade Tensions

Deep Look

The U.S. labor market showed continued resilience last week as unemployment benefit applications ticked up slightly—but remained well within historically stable ranges. According to data released Thursday by the Department of Labor, initial jobless claims rose by 4,000 to a total of 223,000 for the week ending April 5, a figure still below market expectations of 225,000.

Economists widely view weekly jobless claims as an important indicator of layoffs and the broader health of the labor market. Despite ongoing uncertainty fueled by an escalating trade war, claims have consistently hovered between 200,000 and 250,000, a sign of underlying strength in the U.S. economy.

This modest rise comes just one day after President Donald Trump announced a 90-day pause on most of his newly proposed tariffs, aimed at offering countries—particularly the European Union—room to negotiate. While the move has temporarily alleviated some trade-related anxiety, concerns about long-term global economic stability remain.

Meanwhile, the Trump administration’s plans to downsize the federal workforce are underway through the Department of Government Efficiency (DOGE), a newly created agency led by entrepreneur Elon Musk. Although it’s not yet clear how these federal cuts will appear in the short-term jobless claims data, several agencies have already announced or are preparing for layoffs. These include the Department of Health and Human Services, Internal Revenue Service, Small Business Administration, Department of Veterans Affairs, and Department of Education.

Despite this looming turbulence, the broader employment picture remains solid. In its most recent jobs report, the government revealed that 228,000 new jobs were added in March, significantly surpassing expectations. While the unemployment rate edged up to 4.2%, it still sits at a historically healthy level.

Notably, there have been a series of high-profile corporate layoffs in 2025, with firms such as Workday, Dow, Meta, CNN, Starbucks, and Southwest Airlines making job cuts. Still, these appear to be isolated adjustments rather than a broader trend, as indicated by relatively flat unemployment claim data.

The four-week moving average for unemployment claims, which smooths out week-to-week fluctuations, remained unchanged at 223,000, reinforcing the narrative of a steady labor environment.

In addition, the number of people receiving ongoing unemployment benefits—also known as continued claims—dropped by 43,000 to 1.85 million for the week ending March 29. This drop further underlines the lack of widespread layoffs and suggests that most workers losing jobs are quickly finding new employment.

Overall, despite the current backdrop of trade friction, upcoming federal government downsizing, and spotty corporate layoffs, the labor market remains remarkably stable. If economic conditions deteriorate or if tariff tensions reignite after the current 90-day pause, the data could shift. But for now, job creation continues to outpace job losses, maintaining the U.S. workforce on firm ground.