U.S. jobless claims fell slightly to 224,000 last week, just below forecasts. Despite slower hiring, low layoffs continue to support labor market stability.
President Trump’s trade policies and federal government downsizing plans are creating economic uncertainty.
While federal worker claims haven’t significantly increased, the D.C. metro area is seeing more claims, likely from affected contractors.
Elon Musk’s Department of Government Efficiency has fired thousands of federal workers, though courts have ordered many reinstated. Continuing claims decreased to 1.856 million, and economists expect the March unemployment rate to remain at 4.1%.