US jobless claims edge up slightly, labour market remains resilient amid economic concerns

Applications for unemployment benefits in the United States rose modestly last week, signalling continued labour market resilience despite persistent concerns over a potential economic slowdown. According to the US Department of Labor, jobless claims increased to 222,000 for the week ending 19 April, up from 216,000 the previous week. The figure slightly exceeded analyst expectations of 220,000 new applications. Weekly claims have generally remained within the healthy range of 200,000 to 250,000 in recent years, indicating a relatively stable employment environment.Despite geopolitical and economic headwinds—including trade tensions and cost pressures—most businesses continue to retain staff, contributing to a robust job market.

IMF warning
While former President Donald Trump has eased or retracted several tariff threats, concerns remain about a potential global economic slowdown. On Thursday, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, called on nations to swiftly resolve trade disputes that threaten global growth. She noted that lingering uncertainty from the Trump administration’s aggressive tariff policies had led to deferred corporate investment and reduced consumer spending.The IMF’s comments follow its recent downgrade of global growth forecasts for the year, underscoring the fragility of the post-pandemic recovery.

Government workforce cuts

In parallel with trade and economic policy shifts, the Trump administration’s efforts to reduce the size of the federal workforce are gaining traction. The newly formed Department of Government Efficiency (DOGE), headed by Elon Musk, has begun leading this initiative. While the timeline for the impact of these job cuts on national unemployment statistics remains unclear, early signs of disruption are emerging in Washington, D.C.

Several key agencies—including Health and Human Services, the Internal Revenue Service, the Small Business Administration, the Department of Veterans Affairs, and the Department of Education—have either announced or are planning layoffs.

Mixed signals from employers

While the broader job market remains solid—with the government reporting a net addition of 228,000 jobs in March—the unemployment rate ticked up slightly to 4.2%. Nonetheless, the figure is still considered healthy by historical standards.

Major corporations such as Workday, Dow, CNN, Starbucks, Southwest Airlines, and Meta (Facebook’s parent company) have announced layoffs in 2025, reflecting sector-specific adjustments and evolving business strategies.

Four-week average and continuing claims

The four-week moving average of jobless claims, a metric used to smooth out week-to-week volatility, edged down by 750 to 220,250. Meanwhile, continuing claims for the week ending 12 April fell by 37,000 to 1.84 million, suggesting fewer individuals are remaining on unemployment rolls.