Weekly Initial Jobless Claims Tick Up Slightly, Providing Fed Room to Keep Rates Unchanged

BlockBeats News, March 26th. The number of initial unemployment claims in the United States increased slightly last week, indicating a stable labor market, and also providing the Federal Reserve with room to keep interest rates unchanged and closely monitor inflation risks related to the Middle East conflict. The U.S. Department of Labor said on Thursday that in the week ending March 21st, the number of initial jobless claims increased by 5,000 people, reaching 210,000 after seasonal adjustment. Due to smaller layoffs, the number of initial jobless claims has been maintained between 201,000 and 230,000 this year.

Economists stated that the ongoing uncertainty caused by Trump's aggressive import tariff policy has led to a decrease in labor demand. Over the three-month period ending in February, the private sector's non-agricultural employment increased by only an average of 18,000 per month. They also pointed out that the Trump administration's tough immigration policy has reduced labor supply, which has also affected employment growth. This has resulted in what Fed Chairman Powell referred to as a "balanced state of zero employment growth" this month, but this situation "poses downside risks." (FXStreet)