Jobless Claims Fall Slightly, Indicating Stable Labor Market
Initial jobless claims in the United States declined last week, signaling continued labor market steadiness in early February. According to the Labor Department, state unemployment claims dropped by 7,000 to a seasonally adjusted 213,000 for the week ending February 8. Analysts surveyed by Reuters had anticipated 215,000 claims for the week.
The downward trend in claims aligns with persistently low layoffs this year, bolstering the economic recovery. The Federal Reserve has paused interest rate cuts as it monitors the impact of the Trump administration's policies.
Economists deem Trump's proposed mass deportations, tariffs, and tax cuts as inflationary. The central bank maintained its benchmark interest rate in the 4.25%-4.50% range last month, following a series of cuts since September. The rate had been raised significantly in 2022 and 2023 to curb inflation.
Despite low layoffs, job opportunities for those seeking employment have diminished compared to recent years, as businesses adopt a cautious approach. Nonfarm payrolls rose by 143,000 in January, while the unemployment rate remained at 4.0%.
The number of continuing claims, a proxy for hiring, decreased by 36,000 to a seasonally adjusted 1.850 million in the week ending February 1, according to the report.