U.S. Jobless Claims Fall, Job Market Remains Robust
Applications for unemployment benefits decreased by 7,000 to 213,000 for the week ending February 8, according to the Labor Department. This figure is below analysts' projections of 215,000.
The four-week moving average, which reduces weekly volatility, declined by 1,000 to 216,000. Despite recent fluctuations, the labor market continues to exhibit strength, with numerous job opportunities and minimal layoffs.
In January, the U.S. economy added 143,000 jobs, slightly lower than December's gain of 256,000. However, the unemployment rate remained at a low 4%.
The Federal Reserve has maintained its benchmark lending rate, following three cuts in late 2024. The Fed continues to monitor inflation and the labor market for signs of economic weakness.
Recent consumer price data indicates that inflation has accelerated to 3% in January from a year ago, exceeding the Fed's target of 2%. This persistent inflation may hinder the Fed's plans for rate cuts in 2025.
Despite the overall health of the job market, several companies have announced layoffs in 2025, including Workday, Dow, CNN, Starbucks, and Meta. In late 2024, GM, Boeing, Cargill, and Stellantis also implemented job cuts.
As of February 1, approximately 1.85 million Americans were receiving unemployment benefits, a decline of 36,000 from the previous week.