The number of initial jobless claims in the United States increased slightly last week, indicating that the labor market remains robust
The number of initial jobless claims in the United States increased slightly by 5,000 last week to 219,000, still close to pre-pandemic levels, indicating a robust labor market. The number of continuing jobless claims rose to 1.869 million, in line with expectations. Economists are paying attention to jobless claims data to assess the impact of layoffs under the Trump administration on the economy. Experts point out that a reduction in government hiring may lead to a slowdown or layoffs in the private sector. The Federal Reserve is monitoring the potential impact of Trump’s policies on inflation, believing that labor market indicators need to be closely watched
According to the Zhitong Finance APP, last week, the number of initial jobless claims in the United States saw a slight increase but remained near pre-COVID-19 levels, indicating that the labor market remains robust. Data released by the U.S. Department of Labor on Thursday showed that for the week ending February 15, the number of initial jobless claims increased by 5,000 from the previous week to 219,000, higher than the market expectation of 215,000.
For the week ending February 8, the number of continuing jobless claims rose to 1.869 million, roughly in line with market expectations.
Economists are monitoring jobless claims to gain preliminary insights into the impact of President Trump's dismissal of federal workers. The White House aims to cut approximately 2.3 million federal government employees (excluding the military and postal service).
The historically low layoff rate helps keep the labor market robust, but this situation may change as workers dependent on federal contracts or funding lose their jobs.
Federal government layoffs, hiring freezes, and spending cuts are expected to have a ripple effect on local economies, particularly in Washington D.C. and neighboring Virginia and Maryland, and trigger layoffs in the private sector.
Sung Won Sohn, a finance and economics professor at Loyola Marymount University, stated, "The reduction in government hiring in the U.S. may signal budget tightening, leading to a slowdown or layoffs in private enterprises that rely on federal spending."
Nationwide, the number of initial jobless claims is roughly consistent with levels in 2019, supporting the Federal Reserve's stance to keep interest rates unchanged before inflation recovers. Policymakers are closely monitoring the impact of the Trump administration's fiscal, trade, and immigration policies on the economy.
The minutes from the Federal Reserve's policy meeting on January 28-29, released on Wednesday, indicated that policymakers are concerned that Trump's policies could lead to rising inflation.
Federal Reserve officials believe the labor market is robust, but "labor market indicators are worth close attention."