Summary

The latest reading on U.S. layoffs signaled a modest uptick in jobless-claim filings, even as broader labor-market indicators pointed to a still-stretched hiring pace. For the week ending April 4, the U.S. Labor Department reported that applications for unemployment benefits rose to 219,000 from 203,000 the previous week. The Labor Department said the weekly applications—often treated as a near-real-time proxy for layoffs—have remained within the typical band seen in recent years.

In addition to the spike in the headline total, the government reported that the four-week moving average of jobless claims rose by 1,500 to 209,500. The Labor Department also reported that the number of people continuing to file for unemployment benefits fell for the week ending March 28, dropping by 38,000 to 1.79 million, the lowest level in nearly two years.

Economists and analysts continue to watch the weekly claims numbers because they offer an early read on whether employers are cutting jobs. The Labor Department’s report also landed alongside a recent payrolls picture in which employers had added jobs but still showed signs of softness, including revisions that trimmed prior months’ job gains.

The claims report arrived during market uncertainty tied to geopolitics. After Iran, Israel and the United States announced a two-week ceasefire agreement, oil prices dropped sharply, though they later climbed again as investors questioned the durability of the deal. The Labor Department’s data Thursday also coincided with broader market pullbacks following a strong move the day before.

Energy prices remained elevated even after the initial decline. The AP reported that a barrel of U.S. crude had been at $112 before the ceasefire was announced, up from about $67 in the days leading up to the conflict, and that even after a large Wednesday decline, businesses and consumers faced higher energy costs. The ceasefire announcement also overlapped with events affecting global supply, including Israel’s reported attacks on Lebanon and Iran’s reported re-closure of the Strait of Hormuz, through which 20% of the world’s oil passes.

The labor data also came amid inflation concerns that complicated expectations for interest-rate cuts. The AP reported that U.S. inflation was already above the Federal Reserve’s 2% target, and that the government planned to issue its March consumer prices report on Friday. The same report said Fed officials had voted to raise rates three times to end 2025, and had held off on lowering rates further during 2026.

In the background, economists have described the job market as stuck in a “low-hire, low-fire” pattern, with the unemployment rate historically low but workers facing difficulty finding a new job. FactSet data cited by AP showed employers added fewer than 200,000 jobs last year compared with about 1.5 million in 2024, and AP tied some of the hiring slowdown to factors including slowing growth in hiring that began about two years earlier, plus lingering effects of high interest rates used to control inflation.

AP also pointed to recent job cuts at high-profile companies, including Oracle and actions described at other large firms. The report said Oracle cut thousands of workers, while the Wall Street Journal reported that The Walt Disney Co. was preparing to cull 1,000 positions; other announced reductions mentioned in the AP story included Morgan Stanley, UPS and Amazon.

While the claims number rose, AP said the level remained within a stable range that has characterized weekly applications for jobless aid since the economy emerged from the pandemic recession. The government’s latest data therefore suggested layoffs remained present but did not break out into a sharp new acceleration in the near term.