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Weekly jobless claims at seven-month high; trade deficit posts record contraction
Reuters ^
| 06/05/2025
| Lucia Mutikani
Posted on 06/05/2025 9:12:06 AM PDT by SeekAndFind
SUMMARY
* Weekly jobless claims increase 8,000 to 247,000
* Continuing claims fall 3,000 to 1.904 million
* Trade deficit shrinks by a record 55.5% to $61.6 billion
The number of Americans filing new applications for unemployment benefits increased to a seven-month high last week, pointing to softening labor market conditions amid mounting economic headwinds from tariffs. The report from the Labor Department on Thursday also continued to show workers losing their jobs having a tough time landing new opportunities as uncertainty caused by President Donald Trump's aggressive trade policy leaves employers reluctant to increase headcount.
Economists said technical difficulties adjusting the data at the start of summer could have contributed to the second straight weekly increase in unemployment claims. Still, they said the data offered some evidence of labor market strains.
"We won't dismiss the rise in claims over the last two weeks, which may be signaling weakening labor market conditions in response to the Trump administration's tariff policies and uncertainty," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.
"However, seasonal quirks might have contributed to the rise in claims."
Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 247,000 for the week ended May 31, the highest level since last October. Economists polled by Reuters had forecast 235,000 claims for the latest week.
There was a sharp rise in unadjusted claims in Kentucky, likely related to layoffs in the motor vehicle industry amid duties on imported parts. There was also a notable increase in filings in Tennessee, which also has motor vehicle assembly plants. Claims surged in the prior week in Michigan, attributed to layoffs in the manufacturing industry.
But companies are generally hoarding workers after struggling to find labor during and after the COVID-19 pandemic.
(Excerpt) Read more at reuters.com ...
TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: alreuters; deficit; fakenews; jobs; unemployment
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To: SeekAndFind
A separate report from the Commerce Department's Bureau of Economic Analysis showed the trade deficit narrowed sharply in April, with imports decreasing by the most on record as the front-running of goods ahead of tariffs ebbed, which could provide a lift to economic growth this quarter.
The trade gap contracted by a record 55.5% to $61.6 billion, the lowest level since September 2023. The goods trade deficit eased by a record 46.2% to $87.4 billion, the lowest level since October 2023. A rush to beat import duties helped to widen the trade deficit in the first quarter, which accounted for a large part of the 0.2% annualized rate of decline in gross domestic product last quarter. The contraction in the deficit, at face value, suggests that trade could significantly add to GDP this quarter, but much would depend on the state of inventories.
"The collapse in the trade gap in April, although unlikely to be sustained, points to a massive trade addition to GDP growth and, if the offset to the import swing is not measured in inventories, second-quarter measured GDP growth could be eye-popping, possibly in the area of 5%, but as meaningless as the first-quarter's decline in output," said Conrad DeQuadros, senior economic advisor at Brean Capital.
Imports decreased by a record 16.3% to $351.0 billion in April. Goods imports slumped by a record 19.9% to $277.9 billion, held down by a $33.0 billion decline in imports of consumer goods, mostly pharmaceutical preparations from Ireland.
Imports of cellphones and other household goods fell $3.5 billion. Industrial supplies and materials imports declined $23.3 billion, reflecting decreases in finished metal shapes and other precious metals.
Motor vehicle, parts and engines imports fell $8.3 billion with passenger cars accounting for much of the decline. The front-loading of imports is probably not over. Higher duties for most countries have been postponed until July, while those for Chinese goods have been delayed until mid-August. The Trump administration had given U.S. trade partners until Wednesday to make their "best offers" to avoid other punishing import levies from taking effect in early July.
To: SeekAndFind
I wonder if the tariff fright fest generated by the enemy media and Wall Street didn’t generally scare off purchases, especially of imported goods.
3
posted on
06/05/2025 9:35:01 AM PDT
by
pierrem15
("Massacrez-les, car le seigneur connait les siens" )
To: SeekAndFind
AP knows many of the drooling halfwits on the left don’t know “ contraction” means. There is no reason to use the word in this context except to obviate it’s meaning.
4
posted on
06/05/2025 10:24:32 AM PDT
by
jmaroneps37
(Freedom is never free. It must be won rewon and jealously guarded.)
To: SeekAndFind
“The collapse in the trade gap in April, although unlikely to be sustained...”
And this is what passes for objective reporting?
5
posted on
06/05/2025 10:34:17 AM PDT
by
Ge0ffrey
To: SeekAndFind
Similar (I believe) to Trumps 1st term...before China and the deep state lowered the boom (covid)
6
posted on
06/05/2025 10:38:21 AM PDT
by
RckyRaCoCo
(Time to throw them out of the Temple...again)
To: RckyRaCoCo
Don’t post anything from Rotters.
7
posted on
06/05/2025 10:49:27 AM PDT
by
cp124
(Bring back the Constitution.)
To: Ge0ffrey
Journalists today think it’s their job to convey their sociopolitical bias.
8
posted on
06/05/2025 10:54:30 AM PDT
by
Red6
To: cp124
9
posted on
06/05/2025 11:27:33 AM PDT
by
phil00071
To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; BraveMan; cardinal4; ...
10
posted on
06/05/2025 12:47:04 PM PDT
by
SunkenCiv
(The best thing about a muzzie civil war is, everyone wins.)
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