The number of Americans filing new claims for unemployment benefits rose modestly last week, underscoring continued resilience in the US labor market despite ongoing layoffs in the technology sector and broader economic uncertainty.
Data released by the Labor Department on Thursday showed initial claims for state unemployment benefits increased by 10,000 to a seasonally adjusted 200,000 for the week ended May 2.
Economists surveyed by Reuters had forecast 205,000 claims.
The latest increase partially reversed the sharp decline recorded in the previous week, suggesting that layoffs remain relatively limited across much of the economy.
Labour market stability persists
The labour market has remained remarkably stable even as several major technology firms announced job cuts linked to the growing adoption of artificial intelligence tools.
Economists noted that unemployment claims have remained below 230,000 throughout the year, a sign that companies are generally reluctant to reduce headcount despite slower hiring activity and concerns about economic growth.
Separate government data released earlier this week showed there were 0.95 job openings for every unemployed person in March, up from 0.91 in February, reinforcing expectations that labor demand remains relatively healthy.
At the same time, a report from global outplacement firm Challenger, Gray & Christmas showed US-based employers announced 83,387 job cuts in April, up 38% from March.
However, announced layoffs were still down 21% compared with the same period last year.
Technology companies continued to account for the largest share of job cuts, with many firms citing AI-driven restructuring and automation efforts.
Economic risks remain in focus
Despite the steady labor market backdrop, economists warned that geopolitical tensions and higher commodity prices could create headwinds in the coming months.
There are currently few signs that the US-Israel conflict involving Iran has significantly affected employment conditions.
However, analysts cautioned that shipping disruptions through the Strait of Hormuz could raise prices for key commodities including petrochemicals, fertilizers and aluminum, adding fresh inflationary pressures.
The number of people continuing to receive unemployment benefits after an initial week of aid — viewed as a measure of hiring conditions — fell by 10,000 to 1.766 million during the week ended April 25.
Attention now turns to Friday’s closely watched nonfarm payrolls report, which is expected to provide a broader picture of labor market conditions.
Payroll growth expected to slow
Economists surveyed by Reuters expect nonfarm payrolls to have increased by 62,000 jobs in April following a stronger 178,000 rise in March.
The anticipated slowdown is expected to reflect fading seasonal hiring boosts and the return of striking healthcare workers.
Even so, economists noted that projected job growth would still remain above the estimated “break-even” pace needed to keep up with growth in the working-age population.
The unemployment rate is forecast to remain unchanged at 4.3%, though some analysts believe it could round down slightly to 4.2%.
A Conference Board survey released earlier this week also pointed to relatively steady labor conditions, with fewer consumers reporting that jobs were “hard to get” in April while perceptions of jobs being “plentiful” remained largely stable.
The post US jobless claims rise less than expected despite ongoing layoffs appeared first on Invezz