The number of people applying for unemployment benefits in the United States increased more than expected last week.

Last week, initial jobless claims in the United States increased more than expected, which may suggest an increase in layoffs due to tariffs. Tariffs dragged down the economy in the first quarter. With businesses trying to avoid Trump's tariffs by importing a large number of goods, the US GDP shrank for the first time in three years last quarter. Economists predict that the aggressive trade policy will lead to a wave of unemployment. Tariffs expected to drag down domestic demand are already prompting some companies to lay off workers. United Parcel Service announced on Tuesday that it will lay off 20,000 people and close 73 factories due to a decrease in Amazon deliveries. Overall, most companies are taking a wait-and-see approach, retaining their current employees while being cautious about hiring more.