The numbers: Some 224,000 people who lost their jobs applied last week for unemployment benefits, a very low number that suggests the U.S. labor market is still in good shape even as trade wars reverberate through the economy.
Initial jobless claims excluding federal workers fell by 1,000 to 224,000 in the seven days that ended March 22, the government said.
A different category that counts just federal employees registered a modest 821 new claims in the seven days ending March 15, down from 1,066 in the prior week. These claims are reported with a two-week lag.
So far there has not been a huge increase in federal jobless claims even though the Trump administration has reportedly cut tens of thousands of government employees.
Some employees have been reinstated temporarily via court order as lawsuits seek to overturn the firings. Others’ claims have been stuck in limbo because of differences in how federal applications are handled.
Key details: The number of jobless workers collecting unemployment benefits declined by 25,000 to 1.86 million, based on seasonally adjusted figures.
These so-called continuing claims have risen gradually over the past two years, because it’s taking longer for people who lose a job to find another.
The total number of ex-federal workers receiving benefits climbed by 487 to 9,135 in the week ending March 8, up 46% from the same week a year earlier.
Government workers are paid benefits from a separate federally funded unemployment fund, but they file jobless claims in the states in which they live.
Big picture: The reduction in the federal workforce is probably going to show up in jobless claims gradually given the legal wrangling and the more complicated process for former government workers to receive benefits.
The broader U.S. job market is still in good shape. Hiring has slowed, but unemployment is low at 4.1% and most companies are trying to avoid layoffs.
Looking ahead: “The labor market continues to roll along,” said Chris Larkin, managing director of trading and investing at E-Trade by Morgan Stanley. “Jobless claims aren’t reflecting any unusual inflation pressures, and they aren’t showing any effects from federal layoffs.”
