Elon Musk's DOGE lays off thousands of federal employees, leading to a moderate increase in initial jobless claims in the United States

According to Jin Shi's report, the number of initial jobless claims in the United States increased moderately last week, indicating that the foundation of the labor market remains stable. In recent days, Elon Musk's government efficiency department has laid off thousands of federal employees. The unemployment claims of these laid-off individuals were submitted separately under the Federal Employees' Compensation for Unemployment (UCFE) program, with a one week lag in data reporting. The White House hopes to cut approximately 2.3 million federal government workers, excluding the military and post office. The unemployment rate is still at a historical low, but this situation may change as workers who rely on federal government contracts or funding lose their jobs. Federal layoffs, hiring freezes, and spending cuts are expected to have a ripple effect on local economies, particularly in Washington D.C. and neighboring Virginia and Maryland, and trigger private sector layoffs.