U.S. Jobless Claims Rise to 219,000, but Layoffs Remain Low/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. jobless claims increased to 219,000 last week, rising by 11,000 from the previous week, according to the Labor Department. Despite this uptick, layoffs remain historically low, and the job market continues to show resilience. Major companies, including Meta, Starbucks, and Dow, have announced job cuts in early 2025, but overall employment remains steady. The Federal Reserve has maintained its interest rate stance, closely monitoring inflation and economic signals.
Jobless Claims Rise to 219,000, but Layoffs Remain Low: Quick Look
- Weekly jobless claims rose by 11,000 to 219,000 for the week ending February 1.
- The four-week average climbed slightly to 216,750.
- Unemployment remains historically low, with steady job growth.
- December saw a strong jobs report, adding 256,000 new jobs with a 4.1% unemployment rate.
- The Federal Reserve held rates steady and expects only two cuts in 2025.
- Major companies like Meta, Starbucks, Dow, and CNN have announced layoffs in 2025.
- Continuing jobless claims rose to 1.89 million in late January.
U.S. Jobless Claims Rise to 219,000, but Layoffs Remain Low
The number of Americans applying for unemployment benefits rose to 219,000 last week, an increase of 11,000 from the previous week’s seasonally adjusted 208,000, according to the Labor Department. Analysts had projected 213,000 new claims, making the actual figure slightly higher than expected.
Despite this increase, the U.S. job market remains resilient, with historically low layoffs and steady hiring trends.
Labor Market Holding Steady
The four-week moving average, which smooths out week-to-week fluctuations, rose by 4,000 to 216,750. While some weakness appeared in the labor market last year, overall job opportunities remain strong, and layoffs are minimal compared to previous economic downturns.
In December 2024, the U.S. added 256,000 jobs, and the unemployment rate ticked down to 4.1%—a sign that employers continue to hire despite economic uncertainties.
January Jobs Report and Fed Interest Rates
The Labor Department is set to release the January jobs report on Friday, with economists expecting 170,000 new jobs added in the month. While this would be a slight slowdown from December, it still suggests healthy job growth.
Meanwhile, the Federal Reserve has kept its benchmark interest rate unchanged after making three cuts in late 2024. Initially, four rate cuts were expected in 2025, but the Fed has now revised that projection down to just two. The central bank is monitoring inflation and employment trends closely before making further adjustments.
Layoffs Begin in 2025 Across Major Companies
Despite the low overall layoff rates, several major U.S. companies have already announced workforce reductions in early 2025:
- Meta (Facebook’s parent company)
- Starbucks
- Dow
- CNN
- Workday
Additionally, in late 2024, several corporations announced layoffs, including:
- General Motors (GM)
- Boeing
- Cargill
- Stellantis
The total number of Americans receiving unemployment benefits climbed to 1.89 million for the week of January 25, an increase of 36,000 from the previous week.
What This Means for the Economy
The job market continues to show strength, with low layoffs and steady hiring, even as some industries experience restructuring and downsizing. Economists will be closely watching the January employment report and the Federal Reserve’s next moves as 2025 unfolds.
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