US filings for jobless benefits inch up as labor market remains strong

US jobless benefit applications increased slightly last week, with businesses continuing to retain employees despite concerns about a potential economic downturn. According to the Labor Department, new jobless claims rose by 6,000 to 222,000 for the week ending April 19, just above analysts’ predictions of 220,000. These weekly claims are seen as an indicator of layoffs and have remained within a healthy range of 200,000 to 250,000 in recent years. While there are worries about a global economic slowdown, the labor market has been resilient, with President Trump’s efforts to reduce the federal workforce also playing a role. The impact of these job cuts, led by the Department of Government Efficiency (DOGE) and Elon Musk, is yet to be seen in the data. Some federal agencies have already announced layoffs or are planning cuts. Despite some weakening, the labor market remains robust, with ample job opportunities and few layoffs. Notably, several prominent companies have already announced job reductions this year. The report also revealed that the four-week average of jobless benefit applications decreased slightly to 220,250, while the number of Americans receiving unemployment benefits dropped to 1.84 million for the week of April 12.