The number of Americans who filed for unemployment benefits rose less than expected last week, amid a low number of layoffs that is helping to stabilize the labor market.
Initial claims for unemployment benefits at the state level increased by 10,000 to reach 200,000 in seasonally adjusted data for the week ending May 2, the Labor Department said on Thursday. Economists surveyed by Reuters had expected 205,000 claims for the previous week. This increase partially offset the decrease recorded the previous week.
Government data published on Tuesday showed that there were 0.95 job openings for every unemployed person in March, compared to 0.91 in February, indicating a stable labor market.
Despite a wave of layoff announcements by major technology companies related to the adoption of artificial intelligence for certain roles, the number of claims remains below 230,000 this year. Economists speculated that technology sector workers being laid off likely received generous departure packages.
A report released on Thursday by global outplacement firm Challenger, Gray and Christmas revealed that U.S. employers announced 83,387 job cuts in April, a 38% increase from March. However, this figure is 21% lower than the same period last year.
Since the beginning of the year, employers have announced 300,749 job cuts, a 50% decrease compared to the same period in 2025. Most of the layoffs came from technology companies, with AI often cited as the reason.
There is currently no indication that the oil price shock related to the conflict between the United States and Israel against Iran is affecting the labor market. However, economists have warned of potential slowdown risks due to disruptions in maritime traffic in the Strait of Hormuz causing raw material prices to rise, including fertilizers, petrochemical products, and aluminum.
The number of people receiving unemployment benefits after their first week of assistance, an indicator of hiring, decreased by 10,000 to stand at 1.766 million in seasonally adjusted data for the week ending April 25, according to the report on claims.
These data do not impact the highly anticipated April employment report, which is set for release on Friday.
Nonfarm payrolls are expected to have increased by 62,000 last month, following a rebound of 178,000 in March, according to a Reuters survey of economists. The anticipated slowdown reflects the end of the weather-related boost and the return to work of healthcare professionals who were on strike.
The expected pace of employment growth would exceed what economists now consider necessary to keep up with the working-age population. Estimates for the “equilibrium rate” range between zero and 50,000 jobs per month.
The unemployment rate is expected to remain unchanged at 4.3% in April, with a possibility of rounding down to 4.2%. The Federal Reserve Bank of Chicago forecasts an unemployment rate of 4.23%, which could be rounded down to 4.2%.
A survey by the Conference Board released on Tuesday showed that the percentage of consumers finding it “difficult to find a job” decreased in April, while the proportion of those saying jobs were “plentiful” remained nearly unchanged.
