Jobless claims fall to 213,000 as labor market stays firm
New unemployment claims came in below economists’ expectations, pointing to continued resilience in the U.S. labor market.
By Theo Nakamura · Staff Writer
· 2 min read
Fewer Americans filed for unemployment benefits last week, a sign that layoffs remain limited despite a long stretch of elevated interest rates. For everyday investors, the data matters because a steady labor market can support consumer spending, one of the main engines of the U.S. economy.
Initial jobless claims fell by 7,000 to 213,000 in the week ended Feb. 8, the Labor Department said Thursday, according to MarketWatch. Initial claims are first-time applications for unemployment benefits, so they are watched as a timely read on whether employers are cutting jobs.
The decline was slightly larger than economists expected. Economists surveyed by The Wall Street Journal had projected claims would fall by 4,000 to 215,000, MarketWatch reported.
The prior week’s figure was revised to 220,000. That means claims had risen by 12,000 in that week, compared with the earlier estimate of an 11,000 increase to 219,000.
Claims were also at 213,000 in the first week of last year, according to MarketWatch. That comparison keeps the latest reading in a low range and supports the view that employers are not broadly moving to reduce headcount.
Economists cited by MarketWatch said a sturdy consumer is helping keep the labor market strong. The basic idea is straightforward: when households keep spending, companies have more reason to maintain staffing levels. If demand weakens, businesses may pull back on hiring or increase layoffs, which can show up in jobless claims.
Weekly claims can be noisy, so investors usually look at the trend rather than one report in isolation. Still, Thursday’s number adds to evidence that the labor market has not deteriorated sharply, at least through the latest reporting week.
That resilience is relevant for markets because employment data feeds into expectations for growth, inflation and Federal Reserve policy. A stronger job market can help consumers keep spending, but it can also complicate the case for rate cuts if policymakers worry that demand remains too strong. The Labor Department’s latest report showed claims staying low, while the broader policy implications depend on future inflation and employment data.
This story draws on original reporting from MarketWatch.
