US weekly jobless claims unchanged, layoffs decline 55% in February
The labour market is regaining its footing, after stumbling in 2025 amid uncertainty from US President Donald Trump’s broad tariffs
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[WASHINGTON] The number of Americans filing new applications for unemployment benefits was unchanged in the week ended Feb 28 while layoffs dropped sharply in that same month, consistent with stable labour-market conditions.
Initial claims for state unemployment benefits were flat at a seasonally adjusted 213,000 for that week, the US Department of Labor said on Thursday (Mar 5), while economists polled by Reuters had forecast 215,000 claims.
The labour market is regaining its footing, after stumbling in 2025 amid what economists said was uncertainty stemming from US 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 US Supreme Court. He responded to the ruling by imposing a 10 per cent global tariff and later announced it would rise to 15 per cent.
The Federal Reserve’s Beige Book report, which summarises current economic conditions in the US, on Wednesday described the employment levels as “generally stable in recent weeks, as seven of the 12 districts reported no changes in hiring”.
It noted that “contacts in several districts cited rising non-labour input costs, softer demand, or uncertainty about overall economic conditions as reasons for flat or lower employment levels”.
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Economists are optimistic that the labour market will regain momentum in 2026, as tax cuts stimulate demand.
A separate report on Thursday from global outplacement company Challenger, Gray & Christmas showed that US-based employers announced 48,307 job cuts in February, down 55 per cent from January and 72 per cent from the year-ago period.
Hiring plans soared 140 per cent from January, but they were down 63 per cent compared with February 2025.
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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 by 46,000 to a seasonally adjusted 1.9 million in the week ended Feb 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 has no bearing on February’s employment report due on Friday, as they fall outside the survey week.
Non-farm 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 per cent. REUTERS
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