0°
Initial unemployment claims jumped to 241,000 for the week ending Monday, April 26, according to Department of Labor data released on Thursday, May 1. That's the largest weekly number since February and 18,000 more than the prior week.
The surge pushed the four-week moving average to 226,000 first unemployment claims. The 241,000 claims were also well above the Dow Jones estimate of 225,000, CNBC reported.
Continued claims – a measure of people still receiving unemployment benefits – jumped by 83,000 to 1.9 million, the highest level since November 2021. The metric is a week behind and typically illustrates broader layoff trends.
While unemployment has risen nationwide, several Northeast states posted the largest increases in claims.
- New York saw the biggest statewide jump, filing 15,525 more initial claims than the week before. Continued claims climbed to 176,144.
- New Jersey recorded more than 12,000 new filings. The Garden State had the highest insured unemployment rate in the US at 2.4% as of Monday, April 12, fueled by education sector layoffs.
- Massachusetts added 3,251 new claims, while its number of people still receiving benefits dipped to 65,549.
Compared to the same week in 2024, unadjusted claims across the country are up nearly 34,000.
The jobless surge came just one day after the federal government reported that the country's gross domestic product shrank 0.3% in the first quarter of 2025, snapping a three-year streak of growth. The contraction was largely caused by a 41.3% spike in imports, as companies rushed to stockpile goods due to Trump's chaotic rollout of new tariffs.
The GDP decline marks the first quarterly contraction since early 2022 and was a dramatic drop from the 2.4% growth in the fourth quarter of 2024. More than five percentage points were erased from the Q1 GDP because of the import surge, likely in anticipation of the longer-term impact of Trump's tariffs.
Economists traditionally consider a recession to be when a country experiences two consecutive quarters of negative GDP growth. The broader picture – including falling consumer confidence and inflation worries – suggests increased pressure on the economy.
Hiring also showed signs of slowing.
Private employers added just 62,000 jobs in April, according to ADP data also released on Wednesday, April 30. That number was barely more than half of the 120,000 jobs expected by a Dow Jones estimate.
- UPS Slashing 20K Jobs As Amazon Deliveries Drop, Trump's Tariffs Bite
- Most Canadians Less Likely To Visit US Under Trump, New Study Says: Here's Why
- Amazon Won't Show Tariff Price Hikes After 'Pissed' Trump Reportedly Calls Jeff Bezos
Education and health services lost 23,000 jobs, while the information sector dropped 8,000. The ADP data also said New England lost 33,000 jobs, while the Mid-Atlantic gained 43,000.
The Labor Department is set to release its official April jobs report on Friday, May 2.
Click here to follow Daily Voice Schenectady and receive free news updates.
