Applications for US unemployment benefits fell to a four-week low, adding to evidence that the job market remains healthy in the face of growing uncertainty tied to trade policy.
Initial claims decreased by 2,000 to 227,000 in the week ended May 17, roughly in line with forecasts, Labor Department data showed Thursday. The period includes the government’s survey week for its monthly employment report.
Continuing claims, a proxy for the number of people receiving benefits, rose to 1.9 million in the previous week.
The level of jobless claims indicates companies are relatively comfortable with staffing levels despite elevated anxiety about tariffs and the ripple effects from the Trump administration’s actions to shrink the federal government.
While the administration backpedaled on some tariffs, Federal Reserve Bank of St. Louis President Alberto Musalem still sees trade policy likely weighing on the labor market.
“On balance, tariffs are likely to dampen economic activity and lead to some further softening of the labor market,” Musalem said in a speech Tuesday.
Multiple large companies have recently said they’re cutting jobs, including Nike Inc. and Amazon.com Inc. Schools and businesses that have lost funding from the federal government have also announced a number of layoffs, including Columbia University.
The four-week moving average of new applications for jobless benefits, a metric that helps smooth out volatility, rose to 231,500 — the highest since October.
Before adjusting for seasonal factors, initial claims also fell last week, led by Michigan and Virginia.
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