Associated Press Business Writer Matt Ott
The number of Americans seeking unemployment benefits fell modestly last week, remaining within the same range as in recent years.
The Labor Bureau said Thursday that unemployed claims have fallen from 6,000 to 219,000 for the week that ends March 29th. That’s less than expected by 226,000 new application analysts.
The weekly application of unemployment benefits is considered a layoff proxy and has been in the range of 200,000-250,000 for the past few years, primarily in the 200,000-250,000 range.
But after the Trump administration announced a widespread tariff hike yesterday, economists are worried about a global economy slowdown that could overturn what was an incredibly resilient labor market.
Trump’s promise to significantly reduce the federal workforce is in full motion, like his pledge to enact tariffs.
While it is not clear when government efficiency, or when jobs ordered by “Doge,” will surface in weekly layoff data, some economists have suggested they could appear in the Labor Bureau’s March employment report, which will be coming out Friday.
The February employment report showed the federal government had the highest number since June 2022, cutting 10,000 jobs.
On Monday, some Food and Drug Administration workers were told to pack their laptops to prepare for the possibility that they might not come back, according to an email obtained by the Associated Press.
The massive layoffs are expected to bring 20,000 fewer jobs at the Department of Health and Human Services, with nearly a quarter of staff being less. The layoffs eliminated about 10,000 jobs, and an additional 10,000 workers received offers of early retirement and voluntary separation.
Other federal agencies that have announced layoffs or are making plans cuts include the IRS, Small Business Management, Veterans Affairs and the Department of Education.
The layoffs are part of the Trump administration’s efforts to reduce the size of the federal workforce through a “doge” led by billionaire Elon Musk.
Despite showing signs of weakening over the past year, the labour market remains healthy with abundant jobs and relatively few layoffs.
The government reported that U.S. employers added a solid 151,000 jobs in February, bringing the unemployment rate to as high as 4.1%, but remains a healthy figure by historical standards. Analysts surveyed by data firm Factset predicted a 130,000 increase in non-farm payroll in March, with unemployment rates reaching up to 4.2%.
Several well-known companies have already announced jobs this year, including Workday, Dow, CNN, Starbucks, Southwest Airlines and Facebook’s parent company Meta.
The average of four-week applications aimed at smoothing out some of their weekly swings has decreased from 1,250 to 223,000.
The total number of Americans receiving unemployment benefits in the week of March 22nd increased from 56,000 to 1.9 million. It’s the most since November 2021.
Original issue: April 3, 2025 9:12am EDT
