Jobless Claims Dip Amid Economic Uncertainties
Unemployment benefit applications in the U.S. declined, suggesting steady job growth despite challenges linked to President Trump's policies. Federal positions are being reduced, under the campaign led by Elon Musk's Department of Government Efficiency, raising concerns over prolonged unemployment durations as layoffs may increase later.
The number of Americans filing for unemployment benefits dropped slightly last week, indicating a steady pace of job growth in the U.S. However, the Labor Department report reveals challenges for those unemployed to find new roles, reflecting broader economic uncertainties tied to President Trump's policies.
Initial unemployment claims fell by 2,000 to a seasonally adjusted 227,000 for the week ending May 17, below economists' forecast of 230,000. Despite steady job growth, layoffs are expected to increase later in 2025 due to import duties impacting demand and supply chains. Federal workers have been significantly affected, with applications for unemployment rising notably.
In a campaign led by Tech billionaire Elon Musk's Department of Government Efficiency, federal job cuts have increased, placing additional stress on the labor market. Continuing claims for unemployment benefits rose by 36,000 to 1.903 million in early May, highlighting potential challenges in job availability and increasing unemployment durations.
(With inputs from agencies.)
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