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Applications for jobless benefits rose by 6,000 to 223,000 for
the week ending January 18, the Labor Department said Thursday.
Analysts were expecting 219,000 new applications.
Weekly applications for jobless benefits are considered a proxy
for layoffs.
The total number of Americans receiving unemployment benefits
for the week of January 11 climbed by 46,000 to 1.9 million, the
most since November of 2021.
The rising level of continuing claims, the total number of
Americans collecting jobless benefits, suggests that some who
are receiving benefits are finding it harder to land new jobs.
That could mean that demand for workers is waning, even as the
economy remains strong.
The four-week average of continuing claims is about 100,000
higher than it was a year ago.
Though some signs of labor market weakness surfaced in 2024,
jobs are still plentiful and layoffs historically low.
Earlier this month, the Labor Department reported that job
growth in December surged and unemployment fell. Employers added
256,000 jobs last month and the unemployment rate ticked down to
4.1%.
The final jobs report of 2024 underscores 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. As a
result, the Federal Reserve could be much less likely to cut
borrowing costs again in the coming months after issuing three
cuts late in 2024.
Overall, the solid jobs figures suggest the economy is entering
a post-COVID period of steady growth, higher interest rates, low
unemployment, and slightly elevated inflation.
Though layoffs remain healthy by historical standards, several
high-profile companies have announced job cuts in the past few
months.
Facebook parent company Meta announced earlier this month that
it was laying off 5% of its staff and spirits giant Brown-Forman
— the maker of Jack Daniel’s — said it’s reducing its global
workforce by about 12%.
Late in 2024, GM, Boeing, Cargill and Stellantis all announced
layoffs.
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