U.S. Jobless Claims Rise, Reflecting Easing Labor Market
Washington, D.C. - Applications for unemployment benefits increased slightly last week in the United States, signaling a gradual easing in labor market conditions.
Initial claims rose by 11,000 to a seasonally adjusted 219,000 for the week ending February 1, according to the Labor Department. Economists had projected 213,000 claims.
The report suggests continued strength in the labor market, which has supported economic growth and allowed the Federal Reserve to pause interest rate cuts. The Fed has lowered rates twice since September but has indicated caution in further easing due to inflationary concerns.
Despite low layoffs, job opportunities are decreasing for the unemployed. The government reported that there were 1.1 job openings per unemployed person in December, a slight decline from November.
The number of individuals receiving ongoing benefits increased by 36,000 to 1.886 million during the week ending January 25, indicating a slower pace of hiring.
Although business confidence rose after President Trump's election, hiring plans have been lukewarm amid expectations of declining demand due to tightening monetary policy and tariffs.
The claims data has no impact on the January employment report, scheduled for release on Friday, as it falls outside the survey period. Job growth in January is expected to slow, with an estimated 170,000 new jobs created after a surge of 256,000 in December.
The government will also release its annual benchmark revision to payroll data and introduce new population weights to the household survey, which is used to calculate the unemployment rate.