U.S. Jobless Claims Rise Slightly to 219,000 as Layoffs Stay Low/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Jobless claims in the U.S. rose by 5,000 to 219,000 last week, slightly above analyst expectations. Despite this uptick, layoffs remain historically low, reflecting a resilient labor market. Major companies like Meta and Starbucks have announced cuts, but overall job losses stay moderate.
U.S. Jobless Claims Quick Looks:
- Jobless claims increased to 219,000 for the week ending February 15, 2025.
- Analysts had projected 215,000 new unemployment applications.
- The four-week moving average fell slightly to 215,250.
- Labor market remains healthy despite slower job gains in January.
- January saw 143,000 jobs added, down from December’s 256,000.
- Unemployment rate edged down to 4%, reflecting job market resilience.
- Inflation rose to 3% in January, challenging the Federal Reserve’s rate cut plans.
- The Fed expects two rate cuts in 2025, down from previous projections of four.
- High-profile layoffs announced by companies like Meta, Starbucks, and GM.
- Continuing unemployment claims increased to 1.87 million as of February 8.
Deep Look:
Slightly more Americans applied for unemployment benefits last week, but layoffs across the country remain historically low, signaling continued resilience in the U.S. labor market. According to the Labor Department’s report on Thursday, initial jobless claims rose by 5,000 to 219,000 for the week ending February 15, slightly above analyst expectations of 215,000.
The four-week moving average, which helps smooth out week-to-week fluctuations, declined by 1,000 to 215,250. Economists consider this measure a reliable indicator of underlying labor market trends, and the recent data suggests overall stability despite modest increases in claims.
While there are some expectations that layoffs mandated by the Department of Government Efficiency may appear in upcoming reports, the job market remains robust. Even with signs of cooling, U.S. employers added 143,000 jobs in January—down from the 256,000 positions added in December—but the unemployment rate dipped to an even 4%. This combination of slower job growth and a lower unemployment rate highlights the labor market’s relative health.
Despite overall resilience, several prominent companies have announced job cuts in early 2025. Tech giant Meta, retailer Starbucks, airline Southwest, and media company CNN are among those trimming their workforces. Other corporations, including GM, Boeing, and Dow, announced layoffs in late 2024 as they adjusted to economic headwinds and shifting consumer demand.
Continuing unemployment claims, which measure the total number of people receiving benefits, rose by 24,000 to 1.87 million for the week ending February 8. Although this represents a modest increase, the figure remains low compared to historical averages.
Economic factors beyond the labor market are complicating the Federal Reserve’s monetary policy decisions. Inflation has proven stubbornly persistent, with the consumer price index (CPI) rising 3% year-over-year in January. This marks an increase from September’s 2.4%—the lowest point in three and a half years—and keeps inflation above the Fed’s 2% target.
The Federal Reserve, which implemented three rate cuts in late 2024, opted to keep its benchmark interest rate steady in January. While policymakers initially projected four rate cuts for 2025, expectations have since been revised to just two. The recent uptick in inflation, coupled with continued labor market strength, has raised questions about whether even these planned cuts will materialize.
As inflation remains a top concern and job growth shows signs of gradual slowing, analysts are watching both employment trends and consumer spending closely. For now, the low number of layoffs suggests that most businesses remain confident in the economy’s near-term prospects, even as certain sectors adjust to new realities.
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