New applications for unemployment insurance in the United States dropped slightly. For the week ending March 22, 224,000 Americans submitted claims. On Thursday, the U.S. Department of Labor (DOL) published new information. That represents a modest drop from last week’s adjusted tally of 225,000. Continuing jobless claims dropped, falling by 37,000 to 1.856 million for the week ending March 15.
The seasonally adjusted insured unemployment rate remained unchanged at 1.2%. At the same time, the four-week moving average went down, dropping by 4,750 to reach 224,000, down from the previous week’s revised average. Taken together, these figures point to a solid and unshakeable labor market, in the face of economic headwinds caused by recent government moves.
From the second-order effects of the new 25% tariff on auto imports, announced by the U.S. government in May. President Donald Trump signed the proclamation late Wednesday. This move led to a concerted underperformance in U.S. yields along the curve and led to some uncertainty in confidence for the U.S. Dollar. In the wake of the announcement, the U.S. Dollar struggled to find a bid. On Thursday, DXY, the U.S. Dollar Index, was stuck around 104.00s.
In the currency markets, the EUR/USD pair held up very well. It was trading just below 1.0800 throughout the American session on Thursday. This movement is illustrative of the wider impact that the tariff announcement had on global financial markets.
Today’s drop in initial jobless claims below consensus gives more reassurance on the resilience of labor markets. Economists are watching closely to gauge the effects that these new tariffs have on the domestic and international economic landscape.