Map of States Trump Won in 2024 Where Unemployment Claims Are Increasing
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Unemployment claims rose by about 8,000 nationally for the last week in May, including in states President Donald Trump won in 2024.
Why It Matters
Trump successfully ran last election cycle predominantly on issues including the economy and illegal immigration and has said that inflation during President Joe Biden's tenure turned the economy "to hell." Currently, Americans and business owners are bracing for the uncertainty tied to the Trump administration's tariffs on countries like China, and industries including steel and aluminum.
What To Know
New data published Thursday by the Department of Labor shows a weekly increase of about 8,000 new applications for jobless benefits for the week ending May 31, bringing the total to 247,000. The increase was the highest since October.
Weekly applications have typically ranged between 200,000 and 250,000 since layoffs and firings became more routine during the COVID-19 pandemic and global economic turmoil, according to the Associated Press.
The biggest changes in week-to-week claims came from Kentucky (3,976), Minnesota (2,377), Tennessee (1,765) and Ohio (1,146).
A report from payroll company ADP issued on Wednesday showed 37,000 jobs were added by private employers in May, which was less than expected.
Trump has called on Federal Reserve Chair Jerome Powell repeatedly to cut interest rates, as higher rates place pressure on employment by increasing borrowing costs for businesses, potentially limiting investment.
But the central bank is tasked with keeping prices stable, and it is wary of the inflationary impact of Trump's tariffs and those imposed on the U.S. in retaliation.
Powell has critiqued the tariffs for the potential negative ramifications on inflation and unemployment. In May, the Federal Reserve held its benchmark lending rate at 4.3 percent for the third straight meeting, following three cuts last year.
The newest job numbers arrive as Republicans try to push Trump's "Big, Beautiful Bill" through the Senate. Issues like Medicare and the turbulence of general consumer sentiment because of tariffs have been heavily debated by lawmakers.
Job seekers stand in line at the Wyndham Destinations booth during the Mega JobNewsUSA South Florida Job Fair in the Amerant Bank Arena on April 30, 2025, in Sunrise, Florida.
Job seekers stand in line at the Wyndham Destinations booth during the Mega JobNewsUSA South Florida Job Fair in the Amerant Bank Arena on April 30, 2025, in Sunrise, Florida.Harry Holzer, a public policy professor at Georgetown University and senior fellow at the Brookings Institution, told Newsweek via phone that a country with "enormous uncertainty" economically could result in a reluctance to invest. It can also make more companies than not hesitant to hire new workers.
If it looks like there's going to be an economic slowdown, individuals will likely postpone any plans they might have had to open new businesses or to expand existing ones," Holzer said. "It's so hard to answer any questions because we don't know where the tariffs are going to end up. Every day, Trump changes his mind. He pulled way back on those huge China tariffs but then topped the tariffs on aluminum and steel.
"Some people say, 'Well, he's just going to use them as leverage to try to cut deals with these different countries.' Other people say, 'No, they should be real and they should last.' It depends where you land and where they land. Personally, I think in the meantime everybody's in a wait-and-see mode."
That mode of patience will affect individuals and business owners differently based on sectors and industries, Holzer added. People in the service industry, for example, may not be directly affected by tariffs but might be indirectly affected.
What People Are Saying
Treasury Secretary Scott Bessent, on CBS' Face the Nation: "When we were here in March, you said there was going to be big inflation. There hasn't been any inflation. Actually, the inflation numbers are the best in four years. So why don't we stop trying to say this could happen—wait and see what does happen."
Louisiana Senator John Kennedy, a Republican, on MSNBC's Morning Joe on June 5: "We're in uncharted waters here with the tariffs. I think the markets are telling us that. We don't know what impact they're going to have on the economy. But if we don't extend those tax cuts, we're going into a recession, and our economy's going to be on a journey to the center of the Earth."
What Happens Next
The Federal Open Market Committee is scheduled to meet June 17-18 to set monetary policy.
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