The number of Americans filing initial claims for unemployment benefits rose modestly last week, a sign that the labor market's foundations remain solid. Elon Musk's Department of Government Efficiency has laid off thousands of federal employees in recent days. The claims for unemployment benefits for those laid off were filed separately under the Federal Employees' Unemployment Compensation (UCFE) program, with a one-week lag in data reporting. The White House wants to cut about 2.30 million federal government workers, excluding the military and post offices. Unemployment remains at historically low levels, but that could change as workers who rely on federal contracts or money lose their jobs. Federal government layoffs, hiring freezes and spending cuts are expected to have a ripple effect on local economies, particularly in Washington, D.C., and neighboring states of Virginia and Maryland, and trigger private-sector layoffs.