US jobless benefit claims fall last week as labor market remains strong despite recession fears

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WASHINGTON (AP) — U.S. applications for jobless benefits fell again last week as the labor market continues to hold up despite fears of a tariff-induced recession.

Jobless claim applications fell by 9,000 to 215,000 for the week ending April 12, the Labor Department said Thursday. That’s well below the 225,000 new applications analysts forecast.

Weekly applications for jobless benefits are considered a proxy for layoffs, and have mostly stayed between 200,000 and 250,000 for the past few years.

The four-week average of applications, which can soften some of the week-to-week swings, fell by 2,500 to 220,750.

Even though President Donald Trump has paused or pulled back on many of his tariff threats, concerns remain about a global economic slowdown that could upend what has been an historically resilient labor market.

Like his pledge to institute tariffs, Trump’s promise to drastically downsize the federal government workforce occupied much of the early weeks of his presidency and is still in motion.

It’s not clear when the job cuts ordered by the Department of Government Efficiency — or “DOGE,” spearheaded by Elon Musk — will surface in the weekly layoffs data.

Federal agencies that have either announced layoffs or are planning cuts include the Department of Health and Human Services, IRS, Small Business Administration, Veterans Affairs and Department of Education.

Despite showing some signs of weakening during the past year, the labor market remains healthy with plenty of job openings and relatively few layoffs.

Earlier this month, the government reported that U.S. employers added a surprisingly strong 228,000 jobs in March. While the unemployment rate inched up to 4.2%, that’s still a healthy figure by historical standards.

Some high-profile companies have announced job cuts already this year, including Workday, Dow, CNN, Starbucks, Southwest Airlines and Facebook parent company Meta.

The total number of Americans receiving unemployment benefits for the week of April 5 jumped by 41,000 to 1.89 million.