The number of Americans who filed new unnecessary requests fell last week, but the sharp cuts in government spending and the climb of trade war threaten the stability of the labor market.
Initial unemployment requests fell by 2,000 to 220,000 in a seasonal adjustment, the week closed on March 8, the Labor Department said on Thursday (13). Economists consulted by Reuters foresaw 225,000 requests for last week.
The requests stabilized after a peak in late February amid winter storms and difficulties to adjust the data to seasonal fluctuations around the president’s day holiday.
Although the labor market remains on solid ground, President Donald Trump’s government policies pose a negative risk.
Thousands of federal government officials were fired by the Government Efficiency Department, or Doge, by Elon Musk technology billionaire, an entity created by Trump to dramatically reduce the government.
Trump considers the federal government swollen and lavishing. Unions representing some of the civil servants contested layoffs, resulting in reintegration.
Agencies have a deadline until Thursday to present large-scale layoff plans.
The federal government movement has not yet been reflected significantly on official labor market data.
