Initial claims data release complex signal DOGE layoffs effect not yet reflected

On February 27, Jinshi data, the number of initial claims for unemployment benefits in the United States rose to 242,000, the highest level since December last year, but the data signals are complex. Economists had previously expected that layoffs related to DOGE might affect the data, but the lagging federal employee unemployment benefit claims data remained flat. The latest weekly data from the private sector in Washington, DC, showed a slight rise in the number of claims, but overall remained relatively low. Jefferies’ Thomas Simons wrote, “We had expected this week’s data to rise due to DOGE layoffs, but it is difficult to confirm whether this is the driving factor.”