US weekly jobless claims unchanged; layoffs decline in April

The U.S. labor market remains tight as weekly jobless claims were steady at 208,000, indicating ongoing economic support. Despite a significant slowdown in productivity growth in the first quarter, experts suggest seasonal adjustments may distort these figures. Meanwhile, layoffs are low, maintaining stability in the labor force despite a softening in demand for labor.

The Federal Reserve has maintained interest rates, reflecting a balanced labor market, while inflation concerns persist due to rising labor costs. Upcoming employment reports will further clarify these trends, with expectations of continued job growth. Economists emphasize the healthy underlying trend in productivity, which aligns with inflation targets, supporting a balanced economic outlook.