Unemployment applications rose to 219K last week; layoffs remain relatively low
More Americans filed unemployment claims last week, but the labor market remains healthy and layoffs relatively low
More Americans filed unemployment claims last week, but the labor market remains healthy and there are still relatively few layoffs.
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
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