US Jobless Claims Steady Despite Tariff Turbulence/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. jobless benefit applications held firm at 229,000 last week, signaling continued labor market strength despite economic turbulence from President Trump’s tariff policies. The labor market remains robust, though concerns are rising over future impacts from trade conflicts and federal workforce cuts. Meanwhile, inflation and retail sales reports show mixed signals on consumer resilience.
US Labor Market Snapshot: Quick Looks
- Unemployment claims unchanged at 229,000 for May 10
- In line with forecasts, showing steady labor conditions
- Tariff concerns persist despite 90-day U.S.-China pause
- Fed holds interest rates at 4.3% amid inflation risks
- Wholesale inflation fell unexpectedly in April
- Retail sales dipped as consumers reacted to tariffs
- Q1 GDP shrank 0.3% due to tariff-driven import surge
- Federal job cuts ordered under “DOGE” not yet visible
- Microsoft, Meta, and Starbucks among companies announcing layoffs
- Four-week average of claims rises slightly to 230,500
Deep Look: Weekly Jobless Claims Steady as Economy Braces for Tariff Fallout
WASHINGTON — May 15, 2025
Unemployment benefit claims across the U.S. remained steady last week, with 229,000 applications filed for the week ending May 10, according to the Department of Labor. The figure matches expectations and signals continued resilience in the labor market, even as trade uncertainty clouds the broader economic outlook.
This latest data comes as the Trump administration’s aggressive tariff agenda triggers concerns among businesses, economists, and American workers alike. While the president recently agreed to a 90-day pause in the U.S.-China trade war, experts warn that the full economic toll has yet to hit.
Inflation, Retail Sales Offer Mixed Signals
Two separate government reports released Thursday show a mixed economic picture:
- Wholesale inflation fell in April for the first time in over a year — a potentially welcome development for the Federal Reserve.
- Retail sales, however, slipped in April, reflecting consumer caution after a surge in purchases in March, likely driven by efforts to beat rising prices ahead of expected tariff hikes.
Fed Holds Steady, Eyes Risks
The Federal Reserve left interest rates unchanged at 4.3% during its most recent meeting. Fed Chair Jerome Powell cited a rare “dual risk” environment where both inflation and unemployment pressures loom. He acknowledged that tariffs have dampened consumer and business sentiment but said economic fundamentals remain intact — for now.
“We’re watching closely. The impact of tariffs isn’t fully clear yet,” Powell noted.
Job Market Holding Up — For Now
The labor market has remained one of the strongest pillars of the post-COVID recovery. Despite slowing growth, U.S. employers added 177,000 jobs in April, and unemployment remains low at 4.2%.
But job cuts are starting to surface.
- Microsoft began cutting 6,000 jobs this week, its largest layoffs in over two years.
- Other major firms like Meta, Starbucks, CNN, Southwest Airlines, and Workday have all announced workforce reductions in 2025.
“Many expect the fallout from the trade war to hit harder later this year,” one analyst told AP.
Government Workforce Cuts Loom
Meanwhile, Trump’s campaign to shrink the federal government — led by the Department of Government Efficiency (DOGE) under Tesla CEO Elon Musk — has yet to show up clearly in unemployment data.
Legal challenges have delayed many layoffs, but agencies outside Washington, D.C., are already feeling the effects of reorganizations and freezes.
Weekly Claims Breakdown
- Initial claims: 229,000 (unchanged)
- 4-week moving average: 230,500 (up 3,250)
- Continuing claims: 1.88 million (up 9,000)
These figures remain within a historically healthy range, but analysts caution that the cushion may not last if trade friction escalates or consumer spending continues to soften.
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