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The
number of Americans filing for jobless benefits rose by 5,000 to
219,000 for the week ending Feb. 15, the Labor Department said
Thursday. Analysts projected that 215,000 new applications would
be filed.
Weekly applications for jobless benefits are considered a proxy
for layoffs.
The four-week average, which evens out some of the week-to-week
volatility, fell by 1,000 to 215,250.
Some analysts say they expect layoffs ordered by the Department
of Government Efficiency to show up in the report in the coming
weeks.
Despite showing some signs of weakening during the past year,
the labor market remains healthy with plentiful jobs and
relatively few layoffs.
Earlier this month, 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.
Last week’s consumer prices report that showed that inflation
accelerated last month, creating some doubt about whether the
Fed will 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, some
high-profile companies have announced job cuts already this
year.
Workday, Dow, CNN, Starbucks, Southwest Airlines 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 Feb. 8 rose to 1.87 million, an increase of
24,000 from the previous week.
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