US weekly jobless claims edge down

[WASHINGTON] The number of Americans filing new applications for jobless benefits fell last week, which could help to assuage fears of a labour market deterioration after an unexpected decline in employment in February.

Initial claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 213,000 for the week ended Mar 7, the Labor Department said on Thursday (Mar 12). Economists polled by Reuters had forecast 215,000 claims for the latest week.

Claims have been tucked in a 199,000-to-232,000 range this year amid low layoffs. They remain at levels consistent with a stable labour market. The government reported last week that non-farm payrolls decreased by 92,000 jobs in February, the sixth decline since January 2025 and the second-largest.

The decrease was blamed on harsh winter weather, a strike by healthcare workers and payback following outsized payrolls gains in January, as well as a general hesitancy by businesses to increase headcount because of uncertainty from import tariffs and integration of artificial intelligence into some work roles.

The US Supreme Court struck down President Donald Trump’s sweeping tariffs, which he pursued under a law meant for use in national emergencies. But Trump responded to the ruling by imposing a 10 per cent global tariff, which he said would rise to 15 per cent.

The Trump administration said on Wednesday that it was launching two trade investigations into excess industrial capacity in 16 major trading ​partners and into forced labour.

The US-Israeli war with Iran, which has boosted oil and petrol prices, poses a downside risk to the labour market, economists said. Soaring petrol prices and stock market volatility would weigh on consumer spending, and undercut demand for workers.

Sluggish hiring has left many unemployed people, including recent college graduates, to experience long spells of joblessness. The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, dropped 21,000 to a seasonally adjusted 1.85 million during the week ended Feb 28, the claims report showed.

Last year’s jobless college graduates are not included in the claims data because they have limited or no work history, disqualifying them from claiming unemployment benefits.

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US nonfarm payrolls decline in February; unemployment rate rises to 4.4%

The unemployment rate increased to 4.4 per cent in February from 4.3 per cent in January. REUTERS