Associated Press Business Writer Matt Ott
US applications for unemployment benefits jumped to the highest level in two months, but layoffs have historically remained healthy, despite growing fears of a tariff-induced economic slowdown.
The Labor Bureau on Thursday said its unemployment claims jumped from 18,000 to 241,000 for the week that ends April 26th. This is the most since late February, with 225,000 new application analysts exceeding forecasts.
The weekly application of unemployment benefits has been considered a layoff proxy and has remained primarily in the health range of 200,000-250,000 for the past few years.
The total number of Americans receiving unemployment benefits in the week of April 19th has risen to 192 million since November 2021.
Despite President Donald Trump suspending or pulling back many of his tariff threats, concerns remain about a global economy slowdown that could overturn what was a historically resilient labor market.
According to the Department of Commerce, contractions have already begun in the US.
Commerce reported Wednesday that the US economy had shrunk at a 0.3% rate at an annual pace from January to March, as Trump’s trade war disrupted businesses. First quarter growth was slowed by a surge in imports as US companies tried to bring in foreign goods before Trump imposed a massive tariff.
This was the first quarterly decline in GDP in three years.
Trump’s promise to significantly reduce the federal workforce, like his pledge to enact tariffs, occupy much of the early weeks of his presidency, and is still in motion.
It is not clear when the work ordered by government efficiency has been cut, namely “doge,” led by Elon Musk, will emerge in weekly layoff data. But even outside the Washington, D.C. area, federal staff cuts are already felt.
Federal agencies that have announced layoffs or are making plans cuts include the Department of Health and Human Services, the IRS, Small Business Administration, Veterans and the Department of Education.
Despite showing signs of weakening over the past year, the labour market remains healthy with many job openings and relatively few layoffs.
Earlier this month, the government reported that US employers added an incredibly strong 228,000 jobs in March. The unemployment rate has been inched to 4.2%, but he is still a healthy person by historical standards.
The Department of Labor will issue its April employment report on Friday.
Several well-known companies have already announced jobs this year, including Workday, Dow, CNN, Starbucks, Southwest Airlines and Facebook’s parent company Meta.
The Labor Bureau also reported on Thursday that the four-week average, which eases some of its weekly volatility, rose from 5,500 to 226,000.
Original issue: May 1, 2025 8:46am EDT
