US Job Market Shows Resilience Amid Trade Tensions and Economic Uncertainty

The number of Americans filing unemployment claims dropped slightly last week, highlighting a resilient job market amidst growing economic uncertainties from US trade policies. According to the Labour Department, applications for jobless benefits fell by 2,000 to 227,000 for the week ending May 17, aligning closely with analysts' expectations of 230,000.

Weekly jobless claims serve as an indicator of US layoffs and have remained within a historically healthy range of 200,000 to 250,000 since the pandemic drastically affected the economy five years ago. Despite President Trump's pause on many tariff threats, concerns linger over a potential global economic slowdown that could disrupt the robust US labor market.

In response to economic fluctuations, the Federal Reserve has maintained its benchmark lending rate at 4.3 percent. Chairman Jerome Powell emphasized challenges posed by elevated potentials for both higher unemployment and inflation. Meanwhile, the economy contracted at a 0.3 percent annual pace in early 2025 due to increased imports amid tariff fears, as Trump seeks to rejuvenate American manufacturing through higher import taxes.

(With inputs from agencies.)