US jobless claims fall, continuing rise to over three-year high

Initial jobless claims in the United States declined by 6,000 to 219,000 in the week ending March 29, coming in below market expectations of 225,000 and reaffirming the labor market’s resilience.

US jobless claims fall, continuing rise to over three-year high

Despite this, the number of continuing claims—representing individuals who remain unemployed and are still receiving benefits—rose sharply by 56,000 to 1,903,000 in the prior week. This marked the highest level since November 2021 and exceeded forecasts, signaling that job seekers may be facing greater challenges in securing new employment opportunities. Meanwhile, unemployment claims filed under federal government employee programs, which have drawn attention following recent layoffs at the Department of Government Efficiency (DOGE), fell by 257 to 564. Reports suggest, however, that many of the employees dismissed by DOGE received severance packages, temporarily preventing them from claiming unemployment benefits immediately after their termination.

Investors focus on labor data

Labor market observers are monitoring these developments closely, as rising continuing claims could indicate a gradual cooling in the job market, which may influence Federal Reserve policy decisions. Investors and policymakers will now look ahead to Friday’s non-farm payrolls report for further clarity on employment trends, wage growth, and broader economic momentum.