US weekly jobless claims remained unchanged at 229,000, signaling a stable labor market. However, economic uncertainty stemming from tariffs is making businesses hesitant to hire. The Labor Department reported that initial claims for state unemployment benefits held steady at a seasonally adjusted 229,000 for the week ended May 10. This figure aligned with economists' forecasts polled by Reuters.

Claims have fluctuated between 205,000 and 243,000 this year, consistent with a historically low level of layoffs. Companies have been retaining workers due to the difficulties encountered in finding labor during and after the COVID-19 pandemic. Despite these efforts, job opportunities are becoming more scarce for those out of work.

President Donald Trump's fluctuating tariff policies have created an uncertain economic environment, prompting major companies, including those in the airline and motor vehicle manufacturing sectors, to revise their 2025 financial forecasts. A survey by the National Federation of Independent Business indicated that the share of small businesses reporting unfilled job openings dropped in April to the lowest level since January 2021.

Although the United States and China reached a 90-day truce in their trade war, which included slashing tariffs on imports, uncertainty persists regarding future developments. A 10% blanket duty on almost all imports into the United States remains in place, along with sectoral taxes.

The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased by 9,000 to a seasonally adjusted 1.881 million during the week ending May 3. This increase aligns with a surge in the median duration of unemployment, which rose to 10.4 weeks in April from 9.8 weeks in March.

Following the reduction of the Chinese imports duty to 30% from 145% for a 90-day period, economists have adjusted their unemployment estimates for the year. Goldman Sachs now projects the unemployment rate to rise to 4.5% in December, a decrease from the previous estimate of 4.7%. The jobless rate stood at 4.2% in April.