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The
number of Americans filing for jobless benefits fell by 7,000 to
213,000 for the week ending February 8, the Labor Department
said Thursday. Analysts projected that 215,000 new applications
would be filed.
Weekly applications for jobless benefits are considered
representative of layoffs.
The four-week average, which smooths out some of the
week-to-week volatility, inched down by 1,000 to 216,000.
Despite showing some signs of weakening during the past year,
the labor market remains healthy with plentiful jobs and
relatively few layoffs.
Last week, the Labor Department reported that U.S. employers
added 143,000 jobs in January, significantly fewer than
December’s 256,000 job gains. However, the unemployment rate
ticked down to an even 4%, signaling a still very healthy labor
market.
Late in January, the Federal Reserve left its benchmark lending
rate alone after issuing three cuts late in 2024. Fed officials
are closely monitoring 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.
However, after Wednesday’s consumer prices report that showed
inflation accelerated last month, many experts believe the Fed
may not be moved to cut rates at all this year.
The consumer price index increased 3% in January from a year
ago, up from a 3 1/2 year low of 2.4% in September. The new data
shows that inflation has remained stubbornly above the Fed’s 2%
target for roughly the past six months after it fell steadily
for about a year and a half.
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 February 1 fell to 1.85 million, a decrease of
36,000 from the previous week.
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