The number of initial requests for unemployment benefits for the first time fell last week, but economists expect the change in weeks and months when the Trump administration continues its reduction in government jobs.
There were approximately 221,000 unemployment complaints filed for the week ending on March 1, according to seasonal adjusted data published Thursday by the Ministry of Labor. This represents 21,000 down compared to the statement of the previous week and also below the estimates of economists for 235,000 complaints.
The number of unemployed complaints for the first time withdrew after having unexpectedly raised the previous week, stressing that the increase in the previous week was probably due to punctual factors such as vacation, a deadly winter storm and icy temperatures.
Thursday’s report showed that continuous complaints, filed by people who received at least a week of unemployment benefits, increased from 42,000 to 1.897 million for the week ending on February 22.
Initial data on complaints – although one of the most timid indicators in labor market health – can also be fairly volatile and fluctuated from week weekly due to factors such as weather, temporary layoffs, other state factors and holidays.
What could happen: However, the weekly report becomes even more attentive because the Trump administration makes massive job cuts throughout the federal government and reduces expenses, also sending training effects in the private sector.
The Thursday report of the Labor Department provided the first index of what could happen.
The number of federal workers who made initial complaints under unemployment compensation for the program of federal employees totaled 1,634 for the week ending on February 22; It is up 1,020 deposit compared to the previous week.
In addition, hundreds of thousands of civil servants may be dismissed while the government’s ministry of efficiency reduces roles. However, the impact on data on the American labor market may not occur in a single time, according to economists.
Although some federal employees have been dismissed in recent weeks, others are serving a period of paid opinion in which they have essentially left, but will not be unemployed in weeks, or even in months.