Last week, the number of initial jobless claims in the United States fell to one of the lowest levels in nearly two years, indicating that corporate layoffs remained relatively subdued.
Last week, the number of initial jobless claims in the United States fell to one of the lowest levels in nearly two years, indicating that corporate layoffs remained relatively subdued. Data released by the U.S. Department of Labor on Thursday showed that for the week ending March 28, initial claims for unemployment benefits decreased by 9,000 to 202,000. The median forecast from economists surveyed by the market was 212,000.
As an alternative indicator for receiving unemployment benefits, the number of continuing claims for unemployment benefits rose to 1.84 million in the previous week.
Thursday’s data, along with other recent economic indicators, shows that the U.S. labor market remains in a phase of 'low hiring and low layoffs.' Initial claims for unemployment benefits have hovered at relatively low levels in recent weeks, suggesting that despite a slowdown in hiring, employers are retaining existing employees.
Another set of data released earlier this week showed that the pace of hiring slowed to its weakest level in nearly six years in February. Data released earlier Thursday by the outplacement firm Challenger, Gray & Christmas Inc. showed that U.S. employers announced layoffs of 217,362 people in the first quarter of 2026, the lowest level for the same period since 2022.
Economist Eliza Winger stated, 'Initial jobless claims have been below last year’s levels for seven consecutive weeks, decreasing by an average of about 16,000 per week. Although layoffs have increased in some sectors, particularly in the technology sector, the low number of unemployment benefit claims indicates that companies are not broadly reducing their workforce.'
The four-week moving average, used to smooth fluctuations, fell to 207,750. Before seasonal adjustment, the number of initial claims for unemployment benefits also declined. Michigan, Georgia, and Iowa saw the largest declines.
The government will release the March employment report on Friday, with expectations that employers added a moderate number of jobs during the month and that the unemployment rate will remain unchanged.
Editor/Rocky