U.S. Jobless Claims Rise Slightly, But Labor Market Remains Strong

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U.S. Jobless Claims Rise Slightly, But Labor Market Remains Strong/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. jobless claims increased by 2,000 last week to 223,000. Layoffs remain historically low, signaling a strong labor market. Federal job cuts under Elon Musk’s DOGE initiative could impact upcoming reports.

A “now hiring” sign is posted in Garnet Valley, Pa., Monday, May 10, 2021. Applications for unemployment benefits inched down last week, Thursday, April 21, 2022, as the total number of Americans collecting aid fell to its lowest level in more than 50 years. (AP Photo/Matt Rourke, File)

Unemployment Trends Quick Look

Jobless claims: 223,000 for the week ending March 15.
Four-week average: 227,000, up by 750.
Federal job cuts: 10,000 government jobs lost in February.
Overall job market: 151,000 jobs added in February; unemployment rate at 4.1%.

Deep Look: Jobless Claims Edge Up, but Labor Market Remains Resilient

The number of Americans applying for unemployment benefits inched higher last week, but layoffs remain at historically low levels, reinforcing the strength of the U.S. labor market.

The Labor Department reported Thursday that jobless claims for the week ending March 15 rose by 2,000 to 223,000—slightly below analyst expectations of 224,000. The four-week moving average, which helps smooth out week-to-week fluctuations, ticked up 750 to 227,000.

Minimal Impact from Federal Layoffs So Far

Despite some volatility in hiring trends, layoffs have remained mostly within the 200,000-250,000 range for the past several years, signaling ongoing stability in the job market. However, economists are closely watching how layoffs ordered under the Trump administration’s Department of Government Efficiency (DOGE) initiative, led by Elon Musk, will factor into upcoming labor reports.

So far, 10,000 government jobs were cut in February, marking the largest reduction since June 2022. These layoffs are part of Trump’s broader federal workforce downsizing initiative, though two recent federal court rulings have temporarily reinstated thousands of fired employees.

The March jobs report is expected to reflect a clearer picture of DOGE’s impact.

Private Sector Holds Steady Despite High-Profile Layoffs

Outside of government job losses, the private sector continues to show resilience, with 151,000 jobs added in February. The unemployment rate edged up to 4.1% but remains historically low.

Although some major corporations—including Meta, Starbucks, CNN, Workday, Dow, and Southwest Airlines—have announced job cuts in 2025, the labor market has absorbed them without a significant spike in unemployment claims.

Meanwhile, continuing unemployment claims, which track the total number of people receiving benefits, rose by 33,000 to 1.89 million for the week of March 8.

What’s Next for the Labor Market?

While government workforce reductions could lead to higher jobless claims in the coming months, most analysts believe private-sector job growth will continue to offset losses. The biggest question remains whether Trump’s policies—especially those affecting government employment and corporate regulation—will lead to broader economic shifts.

For now, jobless claims remain near historic lows, and the economy continues to show signs of resilience.