Applications for jobless benefits in the United States saw a slight increase last week, although layoffs remained stable within a generally healthy range.
The latest report from the Labor Department indicated that the number of individuals filing for unemployment benefits rose by 5,000, bringing the total for the week ending February 15 to 219,000. Market analysts had anticipated approximately 215,000 new applications.
Weekly jobless claims are an important indicator of layoffs. Over a four-week period, the average application number fell by 1,000, settling at 215,250.
Experts suggest that upcoming reports may reflect layoffs mandated by the Department of Government Efficiency, which could impact future statistics.
Despite some indications of slowing down over the past year, the job market remains robust with ample job opportunities and a relatively low incidence of layoffs.
In a report released earlier this month, the Labor Department noted that U.S. employers added 143,000 jobs in January, a significant drop from the 256,000 jobs created in December. Nevertheless, the unemployment rate decreased to 4%, indicating continued strength in the labor market.
In late January, the Federal Reserve opted to maintain its benchmark interest rate following three rate reductions in late 2024. Fed officials are carefully observing inflation rates and the job market for any signs of potential economic decline. They have revised their expectation to only two rate cuts in the current year, down from an earlier forecast of four.
Recent consumer price index data revealed a surge in inflation, creating uncertainty about whether the Fed will make further rate cuts this year. Inflation increased by 3% in January compared to the same month last year, up from 2.4% in September, which was a 3.5-year low. For about six months, inflation has remained persistently above the Fed’s target of 2%, after declining steadily for approximately 18 months.
While layoffs are still relatively low when viewed from a historical perspective, several notable companies have announced job reductions early this year. Businesses such as Workday, Dow, CNN, Starbucks, Southwest Airlines, and Meta, the parent company of Facebook, have all initiated cuts to their workforces in 2025.
In addition, companies like General Motors, Boeing, Cargill, and Stellantis also announced layoffs last year.
As of the week of February 8, the total number of Americans receiving unemployment benefits rose to 1.87 million, marking an increase of 24,000 compared to the previous week.
