Despite a slight uptick, the number of Americans filing for unemployment benefits remains historically low. According to the latest report from the Labor Department released on Thursday, jobless claims increased by 2,000 to 223,000 for the week ending March 15. This figure was slightly below the analysts’ forecast of 224,000 new applications. Weekly applications for jobless benefits, which are seen as an indicator of layoffs, have mostly stayed within the range of 200,000 to 250,000 over the past few years. The four-week average, which smooths out fluctuations, rose by 750 to 227,000.
The impact of job cuts initiated by the Department of Government Efficiency (DOGE) on the weekly layoffs report remains uncertain. However, the Labor Department’s February jobs report revealed that the federal government had shed 10,000 jobs, marking the highest number since June 2022. Economists anticipate that the federal workforce reductions will become more apparent in the March jobs report. These layoffs are part of the Trump administration’s plan to downsize the federal workforce through DOGE, spearheaded by Elon Musk. Recent memos from senior U.S. officials have expanded President Trump’s efforts to reduce the workforce, resulting in thousands of probationary employees being terminated. Despite some weakening indicators over the past year, the labor market continues to show strength, with ample job opportunities and minimal layoffs. In February, U.S. employers added 151,000 jobs, and although the unemployment rate edged up to 4.1%, it remains at a healthy level historically. Notable companies such as Workday, Dow, CNN, Starbucks, Southwest Airlines, and Meta (Facebook’s parent company) have already announced job cuts this year. The total number of Americans receiving unemployment benefits as of the week of March 8 increased by 33,000 to 1.89 million.
