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U.S. applications for jobless benefits rose by 11,000 to 219,000
for the week ending February 1, the Labor Department said
Thursday. Analysts were projecting only 213,000 new
applications.
Weekly applications for jobless benefits are considered
representative of layoffs.
The four-week average, which evens out some of the weekly
volatility, rose by 4,000 to 216,750.
While the labor market did start to show some minor signs of
weakness last year, jobs remain plentiful and layoffs
historically low.
Last month, the Labor Department reported that job growth in
December surged and unemployment fell. Employers added 256,000
jobs in the final month of 2024 and the unemployment rate ticked
down to 4.1%.
The final jobs report of 2024 showed that the economy and hiring
were able to grow at a solid pace even with interest rates much
higher than they were before the pandemic.
The Labor Department will released January employment figures
early Friday. Economists surveyed by FactSet believe that U.S.
employers added 170,000 jobs in the first month of 2025, weaker
than December but also still healthy.
As expected last week, the Federal Reserve left its benchmark
lending rate alone after issuing three cuts late in 2024. Fed
officials are keeping their eyes on inflation and the labor
market for signs of a potentially weakening economy. They expect
only two rate cuts this year, down from previous projections of
four.
Overall, while layoffs remain low by historical standards, a
host of companies have announced job cuts already this year.
Workday, Dow, CNN, Starbucks and Facebook parent company Meta
have all trimmed their workforces already in 2025.
Late in 2024, GM, Boeing, Cargill and Stellantis announced
layoffs.
The total number of Americans receiving unemployment benefits
for the week of January 25 climbed to 1.89 million, an increase
of 36,000 from the previous week.
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