The US labor market appears to be stable, with only a slight increase in new unemployment claims. However, job opportunities are dwindling due to rising trade tensions and deep cuts in government spending.
According to the latest data from the Labor Department, initial claims for state unemployment benefits rose 2,000 to 223,000 for the week ended March 15. Economists had forecasted 224,000 claims, but the actual figure remained relatively steady.
The continuing claims, which measure the number of people receiving benefits after an initial week of aid, increased by 33,000 to a seasonally adjusted 1.892 million. This represents a higher-than-expected increase in jobless rolls.
Despite these numbers, Fed Chair Jerome Powell stated that “conditions in the labor market are broadly in balance.” However, economists point out that companies are becoming more cautious due to rising interest rates and policy uncertainty.
The uncertainty is partly driven by President Trump’s tariffs campaign, which has hurt business sentiment. Economists warn that policy volatility is making it harder for companies to plan ahead.
In related news, the National Association of Realtors reported a 4.2% increase in existing home sales in February, but this growth may be temporary due to consumers’ growing anxiety about the economy and labor market.
Overall, while the US labor market appears stable, job opportunities are dwindling due to rising trade tensions and government spending cuts.
Source: https://www.reuters.com/markets/us/us-weekly-jobless-claims-rise-marginally-labor-market-remains-stable-2025-03-20