Kamal Ghorui
Applications for unemployment benefits in the US rose last week but remained within a stable range, indicating resilience in the labour market despite global economic uncertainties, AP reported.Initial jobless claims increased by 16,000 to 2,19,000 for the week ending April 4, up from 2,03,000 in the previous week and higher than analysts’ expectations of 2,10,000, according to the Labour Department.Filings for unemployment benefits, considered a key real-time indicator of layoffs, have largely remained in the 2,00,000–2,50,000 range in recent years, suggesting a relatively steady jobs market.The data comes amid volatility in global markets following the US-Iran ceasefire announcement, which briefly pushed oil prices down to $95 per barrel before rebounding close to $100 amid doubts over the truce after fresh tensions in West Asia.Energy prices remain elevated, with US crude having touched $112 earlier during the conflict, up sharply from about $67 before the escalation, adding to inflation pressures.This comes at a time when US inflation is already above the Federal Reserve’s 2% target, reducing the likelihood of interest rate cuts in the near term.Recent government data also showed inflation remained elevated in February, even before the conflict began.Despite these pressures, the labour market has shown mixed signals. Employers added a stronger-than-expected 1,78,000 jobs in March, bringing the unemployment rate down to 4.3%, though this followed a loss of 92,000 jobs in February and downward revisions of 69,000 jobs for December and January.Several large companies have announced job cuts in recent weeks, including Oracle, while The Wall Street Journal reported that The Walt Disney Co plans to cut 1,000 jobs. Other firms announcing layoffs include Morgan Stanley, Block, UPS and Amazon.Economists say the US labour market is currently in a “low-hire, low-fire” phase, with stable unemployment but weaker hiring momentum.The four-week moving average of jobless claims rose by 1,500 to 2,09,500, while continuing claims fell by 38,000 to 1.79 million for the week ending March 28, the lowest in nearly two years.Hiring has slowed over the past two years and weakened further in 2025 amid tariff-related disruptions, policy uncertainty and the impact of higher interest rates, analysts said.
