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US jobless claims increase less than expected amid low layoffs
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US jobless claims increase less than expected amid low layoffs
May 7, 2026 6:10 AM

WASHINGTON, May 7 (Reuters) - The number of Americans filing claims for unemployment benefits increased less than expected last week amid low layoffs that are helping to anchor the labor market.

Initial claims for state unemployment benefits rose 10,000

to a seasonally adjusted 200,000 for the week ended May 2, the Labor Department said on Thursday. Economists polled by Reuters had forecast 205,000 claims for the latest week. The increase partially unwound the prior week's decline.

Government data on Tuesday showed there were 0.95 job openings for every unemployed person in March versus 0.91 in February, consistent with a stable labor market. 

Despite a raft of layoff announcements by big technology firms related to the adoption of artificial intelligence for some job roles, claims have remained below 230,000 this year. Economists speculated that laid-off technology workers were most likely receiving generous severance packages.

A report from global outplacement firm Challenger, Gray and Christmas on Thursday showed U.S.-based employers announced 83,387 job cuts in April, up 38% from March. The tally was, however, down 21% from last year. 

Employers have so far this year announced 300,749 job cuts, down 50% from the same period in 2025. Technology companies have accounted for the bulk of the layoffs, with AI often cited as the reason.

There are no signs yet that an oil price shock from the U.S.-Israel war with Iran is weighing on the labor market. Still, economists warned of downside risks as shipping disruptions in the Strait of Hormuz raise prices of commodities, including fertilizers, petrochemicals and aluminum.

The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, decreased 10,000 to a seasonally adjusted 1.766 million during the week ended April 25, the claims report showed. 

The claims data have no bearing on the closely watched employment report for April due to be released on Friday.

Nonfarm payrolls likely increased by 62,000 jobs last month after rebounding 178,000 in March, a Reuters survey of economists predicted. The anticipated slowdown will reflect the fading boost from warmer weather and the return of striking health workers. 

The expected pace of job growth would be above what economists say is now needed to keep up with growth in the working age population. Estimates for the so-called break-even rate are between zero and 50,000 jobs per month.

The unemployment rate is forecast to have been unchanged at 4.3% in April, with a possibility of rounding down to 4.2%. The Chicago Federal Reserve is forecasting the jobless rate at 4.23%, which would round down to 4.2%. 

A Conference Board survey on Tuesday showed the share of consumers perceiving employment as "hard to get" dropped in April while the proportion saying jobs were "plentiful" was little changed.

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