Weekly initial jobless claims declined slightly to 219,000, staying low historically. However, the more concerning indicator is the persistent rise in continuing unemployment claims, which increased by 56,000 to reach 1.9 million – the highest level since November 2021.
Additionally, recent data from Challenger, Gray & Christmas showed a 60% surge in job cut announcements in March, reaching 275,240 – the third highest monthly total on record. These cuts were concentrated in the federal government sector. Furthermore, hiring totals in the first quarter were the lowest for that period since 2012.
What’s the bottom line?
While new unemployment filings have mostly stayed muted, the elevated continuing claims, along with surging job cut announcements and declining hiring, collectively point to ongoing challenges in the employment landscape.