US weekly jobless claims at a two-month high; trade deficit widens in February
WASHINGTON – The number of Americans filing new claims for unemployment benefits increased to a two-month high last week amid a gradual easing in labor market conditions. The weekly claims report from the Labor Department on Thursday also showed fewer people remaining on jobless rolls towards the end of March, suggesting that laid-off workers continued to find work, though not as easily as two years ago.
The labor market remains very strong, said Gus Faucher, chief economist at PNC Financial in Pittsburgh. Initial claims for state unemployment benefits rose to a seasonally adjusted 221,000 for the week ended March 30, an increase from the previous week. Many economists attributed the rise in claims to temporary factors, such as an early Easter this year that may have impacted the data.
Meanwhile, a separate report from the Commerce Department showed the trade deficit widening for a second straight month in February. Imports surged, outweighing a record increase in exports, signaling that trade could pose a challenge to economic growth in the first quarter.
The trade deficit widening, combined with the rise in weekly jobless claims, adds to the economic data suggesting both challenges and strengths in the US economy. As the labor market remains highly resilient and job gains are expected, the impact of trade imbalances on economic growth remains a key consideration for policymakers and analysts alike.
