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Jobless Claims Rise More Than Expected, Signaling Potential Economic Slowdown
Initial unemployment claims rose by 18,000 to a seasonally adjusted 241,000 for the week ending April 26, according to the Department of Labor. This figure surpasses Dow Jones economists’ predictions of 225,000 claims. The previous week’s claims were also revised upward by 1,000 to 223,000.
While a portion of this increase may be attributed to factors such as the spring recess in New York public schools, as suggested by Pantheon Macroeconomics chief U.S. economist Sam Tombs, the overall trend suggests a potential upward trajectory in jobless claims in the coming weeks. The four-week moving average for claims also rose by 5,500 to 226,000.
This news comes amidst other indicators of a struggling economy, including a 0.3% decrease in U.S. Gross Domestic Product in the first quarter of 2025 and significantly lower-than-expected private sector job growth in April.
Adding to the concerns, the stock market experienced its worst first-quarter performance during a new presidential term since Gerald R. Ford’s presidency.
The Department of Labor also reported a decrease in continued weeks claimed for benefits across all programs, totaling 1,909,168 for the week ending April 12, a drop of 64,391 from the previous week.