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US Jobless Claims Drop as Labor Market Holds Steady

U.S. Jobless Claims Drop as Labor Market Holds Steady

U.S. initial jobless claims fell last week, indicating no major surge in newly unemployed workers through the end of March. According to the Department of Labor, 219,000 jobless claims were filed in the week ending March 29, down from 225,000 the previous week. The figure was also lower than economists’ expectations of 228,000.

However, the number of continuing claims, which reflects the overall unemployed population, rose to 1.9 million in the week ending March 22—the highest level since November 2021. This marks an increase from 1.85 million the previous week, suggesting that some workers are struggling to find new employment.

The weekly jobless claims report serves as a final labor market snapshot before the March jobs report, set to be released on Friday. Economists expect the unemployment rate to remain steady at 4.1%, with the economy adding 140,000 jobs, slightly lower than in February.

Despite the stability in the labor market, concerns are rising over the impact of Trump’s new tariffs, which were announced on Wednesday. The stock market and U.S. Treasury yields have dropped sharply since the announcement, as investors worry about slower economic growth and potential job cuts in affected industries.

Analysts are also closely watching federal job cuts, particularly in government contractors facing canceled contracts. In the latest data, federal unemployment claims fell to 564, down from 821 the previous week, while private-sector claims declined in the District of Columbia, Maryland, and Virginia.

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