The number of new applications for unemployment benefits in the United States fell by 9,000 to 202,000 for the week ended March 28. The figure was lower than analysts’ forecasts, reflecting a labor market that remained subdued with minimal layoffs in March.
However, economists describe the current situation as a “low hiring, low firing” labor market. This factor is largely due to uncertainty due to aggressive import tariff policies and hardline immigration policies of President Donald Trump’s administration that are affecting the labor supply.
Geopolitical tensions due to the US-Israeli war with Iran are also adding to the burden on the business sector. Although job growth is expected to rebound by 60,000 in March, experts warn that a surge in global oil prices of more than 50% could make the recovery temporary.
The impact of energy inflation is starting to be felt as US gasoline prices hit levels above $4 a gallon for the first time in three years. Rising operating costs and a slowdown in consumer spending have led many companies to take a “wait and see” approach and hold off on hiring new workers.
The official payrolls report is due out on Friday. While initial jobless claims were low, the rise in claims continued to 1.841 million, suggesting that existing unemployed workers are taking longer to find new jobs amid job openings that are at a six-year low.
