Weekly US jobless claims dip to 213,000 amid low layoffs
New US jobless claims fell to 213,000 last week, slightly better than expected. The data suggests a stable labor market despite recent monthly job losses.
The number of Americans filing new applications for unemployment benefits decreased slightly last week, a move that may help calm anxieties about a potential labor market downturn following a sharp drop in employment in February. According to the Labor Department, initial claims for state unemployment benefits in the United States fell by 1,000 to a seasonally adjusted 213,000 for the week ended March 7. This result was slightly stronger than the 215,000 claims predicted by economists. Throughout this year, claims have fluctuated within a narrow band of 199,000 to 232,000, levels generally associated with a stable job market and low layoff activity. However, the broader employment picture remains mixed. Last week, the government reported that nonfarm payrolls fell by 92,000 in February, the second-largest decline since early 2025. Analysts attributed this weakness to a combination of harsh winter weather, industrial action by healthcare workers, and a general reluctance among employers to expand staff amid uncertainties regarding new trade tariffs and the adoption of artificial intelligence in the workplace. Economic policy shifts continue to influence the outlook. Following a Supreme Court ruling that struck down previous trade measures, the administration introduced a 10% global tariff, which is expected to rise to 15%. Furthermore, the government has launched investigations into the industrial capacity of 16 trading partners and issues related to forced labor. Geopolitical tensions also remain a primary concern for the economy. Economists warned that the conflict between Israel and Iran has contributed to higher oil and gasoline prices, which could eventually weigh on consumer spending and labor demand. While hiring has remained sluggish for some groups, including recent college graduates with limited work histories, there was a slight improvement in the number of people receiving benefits after an initial week of aid. This figure, often viewed as a proxy for hiring, dropped by 21,000 to 1.850 million for the week ended February 28. Despite this, the overall unemployment rate rose to 4.4% in February from 4.3% in January.
