The number of initial jobless claims rose slightly last week, indicating that the U.S. labor market remains robust
Last week, the number of initial jobless claims in the United States slightly increased to 219,000, although it remains low, indicating a robust job market. The number of continuing jobless claims rose to 1.89 million. The number of layoffs in January fell to nearly 50,000, the lowest level since 2022, but there have been significant layoff announcements in early February. The Federal Reserve is paying attention to the employment situation and is considering interest rate cuts. The ADP report shows that employment increased by 183,000 in January, exceeding market expectations
According to Zhitong Finance APP, the number of initial jobless claims in the United States rose last week but remains at a low level. Data shows that for the week ending February 1, initial jobless claims increased by 11,000 to 219,000, while the market expectation was 213,000. For the week ending January 25, continuing jobless claims rose to 1.89 million.
Overall, the number of initial jobless claims is consistent with pre-COVID-19 levels. Additionally, earlier released ADP private sector employment data also indicates that the job market remains stable. This aligns with Federal Reserve Chairman Jerome Powell's statement last week that the labor market is "fairly stable."
The unadjusted initial jobless claims also saw an increase, led by California and New York.
According to data from the outplacement firm Challenger, Gray & Christmas, U.S. employers announced nearly 50,000 layoffs in January, the lowest level for January since 2022.
Layoff numbers may rebound this month. In the past week, large companies including Workday, General Motors, and Estée Lauder announced plans for layoffs.
Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, stated, "In terms of layoff announcements, January was relatively calm. However, we have already seen significant announcements at the beginning of February, so this calmness seems unlikely to continue."
It is understood that Federal Reserve officials are closely monitoring the employment situation to consider whether to continue cutting interest rates. The Fed lowered the benchmark lending rate by 1 percentage point last year to support a labor market showing signs of slowing. Recently, Fed policymakers emphasized the importance of maintaining patience as they focus on the U.S. tariff dispute and the impact of interest rate cuts.
A report released on Wednesday showed that the "small non-farm" ADP employment number for January recorded 183,000, the highest since October last year, while the market expectation was 150,000, and the previous value was 122,000.
The ADP report is a closely watched leading indicator for the non-farm payroll report. The January non-farm payroll report will be released on Friday, and unlike the ADP report, it includes government workers. The market generally expects an increase of 169,000 in non-farm payrolls for January, with the unemployment rate remaining at 4.1%