Last week, the number of Americans filing for unemployment benefits decreased, indicating that the economy continued to maintain a steady pace of job growth in May.
The Labor Department announced on Thursday that the seasonally adjusted initial claims for unemployment benefits decreased by 2,000 to 227,000 for the week ending May 17. Economists surveyed by Reuters had expected last week’s claims to be at 230,000.
Due to the difficulty in adjusting for seasonal fluctuations in the data, economists anticipate that the number of claims in the coming weeks will range between 205,000 and 243,000 for this year. This does not signify any significant changes in the labor market conditions.
Despite the increasing economic uncertainty brought on by President Donald Trump’s continuously adjusting trade policies, most employers are reluctant to lay off workers.
In April, the U.S. economy added 177,000 jobs. Economists project that job growth will slow to below 100,000 jobs per month, a level they believe is necessary to keep pace with the growth of the working-age population.
Next week, the data on initial claims for unemployment benefits (as an indicator of hiring conditions) will further reveal the health of the labor market in May. According to the report on unemployment benefits, for the week ending May 10, the number of continued claims increased by 36,000, bringing the seasonally adjusted number of continued claims for unemployment benefits to 1.903 million.
Due to the economic uncertainty associated with tariffs, businesses have been reluctant to increase their workforce. This has resulted in many unemployed individuals facing the hardship of long-term unemployment. The median duration of unemployment in April jumped from 9.8 weeks in March to 10.4 weeks.
(This article is based on a report from Reuters)