The number of Americans submitting new claims for unemployment benefits edged up slightly last week, while the jobless rate remained stable in February, pointing to continued resilience in the labor market.
Initial filings for state unemployment benefits increased by 4,000 to a seasonally adjusted 212,000 for the week ended February 21, the Labor Department reported Thursday.
Labor market regains stability after soft year
The latest claims data covered the Presidents’ Day holiday period, which may have influenced the figures. Even so, the relatively low level of filings pointed to a labor market that is regaining stability after a softer stretch last year, when uncertainty surrounding President Donald Trump’s sweeping tariffs weighed on market conditions.
The U.S. Supreme Court ruled last Friday that the tariffs, implemented under legislation intended for national emergencies, were unlawful. In response, Trump quickly introduced a temporary 10 percent global tariff for 150 days to replace some of the scrapped measures, later increasing the rate to 15 percent over the weekend.
Ongoing uncertainty tied to the now-overturned import tariffs had contributed to businesses’ reluctance to expand hiring. Economists have also pointed to the rapid rise of artificial intelligence as an additional factor prompting employers to proceed cautiously.
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U.S. unemployment rate slips to 4.3 percent in January
The Labor Department’s report also revealed that continuing claims, which track the number of people receiving unemployment benefits after their first week and serve as a gauge of hiring trends, fell by 31,000 to a seasonally adjusted 1.833 million in the week ended February 14. These figures correspond to the period during which the government conducted its survey for February’s unemployment rate.
The U.S. unemployment rate slipped to 4.3 percent in January from 4.4 percent in December. Although the labor market appears to be stabilizing, consumer confidence about employment prospects remains fragile.
Data released this week by the Conference Board indicated that the proportion of consumers who consider jobs “hard to get” climbed to a five-year high in February. At the same time, households reported a more optimistic view regarding overall job availability.
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