Slightly more Americans sought unemployment benefits last week, but overall, layoffs remain at a historically low level. The Labor Department reported that jobless claims increased by 2,000, bringing the total to 223,000 for the week ending March 15. This number is just below the 224,000 new applications predicted by analysts.
These weekly claims are often viewed as an indicator of layoffs, and they have largely stayed within the range of 200,000 to 250,000 in recent years. The four-week average, which smooths out fluctuations, rose by 750 to reach 227,000.
While it isn’t certain when cuts ordered by the Department of Government Efficiency will appear in the weekly reports, it’s worth noting that the February jobs report indicated the federal government let go of 10,000 employees—the largest reduction since June 2022. Economists believe that these federal layoffs may not significantly affect the job market until the March jobs report is released.
These job cuts are part of broader efforts to reduce the size of the federal workforce, a move initiated during the Trump administration under the direction of Elon Musk. Recent decisions have set these layoffs into motion, and a memo issued late last month expanded these efforts significantly. Several probationary employees have already been dismissed, although recent legal actions have resulted in some of these workers being reinstated.
Despite some signs of weakening in the job market, it remains strong, with plenty of job opportunities and relatively few layoffs reported. The Labor Department confirmed that employers added a solid 151,000 jobs last month. Although the unemployment rate has slightly increased to 4.1%, it still stands at a historically healthy level.
Some notable companies have announced job cuts this year, including Workday, Dow, CNN, Starbucks, Southwest Airlines, and Meta, previously known as Facebook. Additionally, the total number of Americans receiving unemployment benefits for the week ending March 8 increased by 33,000, totaling 1.89 million.
Overall, while there may be some fluctuations and challenges, the fundamental strength of the labor market indicates resilience and opportunity for many Americans.
