Jobless Claims Edge Up Slightly, Labor Market Remains Robust
WASHINGTON, D.C. - The number of Americans filing initial unemployment claims rose modestly last week, indicating a continued strong labor market.
Initial claims for state unemployment insurance increased by 5,000 to a seasonally adjusted 219,000 during the week ending February 15, according to the Labor Department's report on Thursday. Economists surveyed by Reuters had anticipated 215,000 claims.
Excluding federal workers, who are reported separately, the claims data suggests that layoffs remain at historically low levels. However, economists warn that job losses in sectors dependent on government contracts or funding could impact the labor market in the future.
Despite concerns over federal layoffs and spending cuts, the overall labor market remains healthy, giving the Federal Reserve (Fed) room to maintain interest rates while monitoring the economic impact of the Trump administration's policies.
Minutes from the Fed's January policy meeting released on Wednesday indicate concerns about higher inflation stemming from initial policy proposals. However, officials deemed labor market conditions as "solid" and "stable."
The Fed kept its benchmark interest rate unchanged last month after a period of easing intended to curb inflation. Economists anticipate a slowdown in job growth in the second half of the year.
Continuing claims, which provide insight into ongoing unemployment, rose by 24,000 to 1.869 million during the week ending February 8.