WASHINGTON, March 5 (Reuters) – The number of Americans filing new applications for unemployment benefits was unchanged last week while layoffs dropped sharply in February, consistent with stable labor market conditions.
Initial claims for state unemployment benefits were flat at a seasonally adjusted 213,000 for the week ended February 28, the Labor Department said on Thursday. Economists polled by Reuters had forecast 215,000 claims for the latest week.
The labor market is regaining its footing after stumbling last year amid what economists said was uncertainty stemming from President Donald Trump’s broad tariffs, which he pursued under a law meant for use in national emergencies.
The import duties have since been struck down by the U.S. Supreme Court. Trump responded to the ruling by imposing a 10% global tariff and later announced it would rise to 15%.
The Federal Reserve’s Beige Book report on Wednesday described employment levels as “generally stable in recent weeks as seven of the twelve districts reported no change in hiring.” The report noted that “contacts in several districts cited rising nonlabor input costs, softer demand, or uncertainty about overall economic conditions as reasons for flat or lower employment levels.”
Economists are optimistic that the labor market will regain momentum this year as tax cuts stimulate demand.
A separate report on Thursday from global outplacement firm Challenger, Gray & Christmas showed U.S.-based employers announced 48,307 job cuts in February, down 55% from January and 72% from a year ago. Hiring plans soared 140% from January, but they were down 63% compared to last February.
Tepid hiring means some people who lose their jobs are experiencing long bouts of unemployment.
The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, increased 46,000 to a seasonally adjusted 1.868 million during the week ended February 21, the claims report showed.
Unemployed recent college graduates are not included in the claims data because they have limited or no work history, disqualifying them from claiming jobless benefits. The claims data have no bearing on February’s employment report due on Friday as they fall outside the survey week.
Nonfarm payrolls likely increased by 59,000 jobs in February after accelerating 130,000 in January, a Reuters survey of economists predicted. The unemployment rate is expected to have held steady at 4.3%.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
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