U.S. Applications for Jobless Claims Increases But Remain at Healthy Levels 

The U.S. applications for jobless claims increased barely last week but stay at healthy levels as businesses appear reluctant to let go of employees in a very tight labor market.

On Thursday, the Labor Department reports on the number of people who applied for unemployment benefits last week. (Photo: AP Photo/Nam Y. Huh)

U.S. Applications for Jobless Claims Increases

U.S. applications for jobless claims experienced a slight increase last week, but they still remain at healthy levels. Companies in the United States appear to be reluctant to let go of employees due to the tight labor market.

According to the Labor Department’s report on Thursday, the number of Americans filing for U.S. applications for jobless claims for the week ending May 20 rose by 4,000 to 229,000, compared to 225,000 the previous week.

However, it is worth noting that the previous week’s number of U.S. applications for jobless claims was revised down by a significant 17,000.

These weekly U.S. applications for jobless claims number serve as a general indicator of the number of layoffs occurring in the country, ABC News reported. To smooth out some of the week-to-week fluctuations, analysts often look at the four-week moving average of claims.

In this case, the average of U.S. applications for jobless claims remained unchanged at 231,750, following a revision down by 12,500 from the previous week. Although there has been a sustained increase in the four-week average, which some analysts interpret as a sign of accelerating layoffs, they are hesitant to predict an imminent spike in job cuts.

As of the week ending May 13, a total of 1.8 million people were collecting unemployment benefits, which represents a slight increase of 5,000 from the previous week.

Since the mass job losses caused by the pandemic three years ago, the U.S. economy has been rapidly adding jobs, and individuals have experienced a level of job security that is not typically seen. This trend has persisted despite rising interest rates over the past year and concerns about an upcoming recession.

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Recent Decline in U.S. Job Openings

The government also reported a recent decline in U.S. job openings in March, reaching the lowest level in nearly two years.

The Federal Reserve aims to achieve a “soft landing” scenario, in which it lowers economic growth just enough to control inflation without causing a recession. However, economists stay skeptical, with many foreshadowing that the United States may enter a recession later this year.

There have been notable layoffs in recent times, particularly in the technology sector, where several companies have acknowledged overhiring during the pandemic.

Major companies including IBM, Microsoft, Salesforce, Twitter, Lyft, LinkedIn, and DoorDash have all declared job cuts in recent months. Additionally, both Amazon and Meta (formerly Facebook) have announced two rounds of layoffs since November.

However, it’s not just the technology sector that is reducing staff. McDonald’s, Morgan Stanley, and 3M have also recently announced layoffs.