Weekly claims for unemployment benefits hit their highest level in two months during the final full week of April while the number of Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021 as the US labor market continues to show signs of slowing.
Data from the Department of Labor released Thursday morning showed 241,000 initial jobless claims were filed in the week ending April 26, up from 223,000 the week prior and well above economists’ expectations for 223,000.
Meanwhile, 1.916 million continuing claims were filed, up from 1.833 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
The data comes as investors are closely watching for any signs of weakening in the US labor market as President Trump’s tariffs are expected to weigh on the economy. While the actual level of initial claims remains below prior periods of economic distress, data out in recent days has shown signs of cooling in the labor market.
Read more: What Trump’s tariffs mean for the economy and your wallet
On Wednesday, data from ADP showed private payrolls grew by just 62,000 in April, far fewer than the 115,000 expected by economists and below the 147,000 new jobs added in March. This marked the smallest increase in private payrolls since July 2024.
“Unease is the word of the day,” ADP chief economist Nela Richardson said in a statement on Wednesday. “Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data. It can be difficult to make hiring decisions in such an environment.”
Meanwhile, data released from the Bureau of Labor Statistics on Tuesday showed 7.19 million jobs were open at the end of March, a decrease from the 7.48 million seen in February. Job openings in March hit their lowest level since September 2024 and were near levels not seen since December 2020.
The Job Openings and Labor Turnover Survey (JOLTS) also showed the ratio of job openings to unemployed workers fell to 1.02% in March, the lowest since the post-pandemic labor market recovery began. This means there is now roughly one unemployed worker for each open job in the economy. During the post-pandemic recovery in 2022, this ratio was closer to 2:1.
The slew of labor market data comes ahead of the government’s monthly jobs report, which is slated for release on Friday.
The April jobs report is expected to show 135,000 nonfarm payroll jobs were added to the US economy last month while unemployment held steady at 4.2%, according to data from Bloomberg.
