Initial jobless claims in the U.S. surged to 241,000 for the week ending April 26, the highest level since February, in a sign of mounting pressure on the labor market amid slowing growth and fallout from a sharp rise in imports ahead of new tariffs. The total exceeded economists' expectations for 225,000 and marked an 18,000 increase from the prior week, the Labor Department reported Thursday.
Continuing claims, which provide a broader snapshot of ongoing unemployment, climbed by 83,000 to 1.92 million, reaching the highest level since November 2021. The increase comes as the economy contracted by 0.3% in the first quarter, driven largely by a surge in imports as businesses sought to stockpile inventory ahead of President Donald Trump's tariff implementation.
New York saw the most significant rise in claims, with unadjusted filings more than doubling to 30,043. The Labor Department did not cite a specific reason for the jump in that state. The District of Columbia, which has experienced elevated layoffs earlier this year due to federal workforce reductions, posted a modest increase.
Though the weekly report does not affect April's official nonfarm payrolls release-set for Friday-it comes at a time of rising concerns over corporate cutbacks and declining demand. United Parcel Service earlier this week said it would cut 20,000 jobs and shut 73 facilities as part of a plan to reduce its delivery volume with Amazon.com.
Economists surveyed by Reuters expect April's payroll gain to total 130,000 jobs, down from 228,000 in March. The unemployment rate is forecast to remain unchanged at 4.2%.
The four-week moving average for jobless claims, a more stable measure of trends, rose by 5,500 to 226,000, remaining broadly consistent with prior weeks.
