US weekly jobless claims fall more than expected amid labour market stability

[WASHINGTON] The number of Americans filing new applications for unemployment benefits fell more than expected in the week ended Feb 14, consistent with a stabilising labour market.

Initial claims for state unemployment benefits dropped 23,000 to a seasonally adjusted 206,000 for the period, the Labor Department said on Thursday (Feb 19).

Economists had forecast 225,000 claims for the week. Its drop marked a significant decline in claims since they jumped to 232,000 at the end of January.

The minutes of the US Federal Reserve’s Jan 27 to 28 policy meeting, published on Wednesday, showed that the vast majority of participants judged that labour market conditions had been showing some signs of stabilisation.

Still, concerns over downside risks to the labour market remained.

The minutes also noted that some policymakers “pointed to the possibility that a further fall in labour demand could push the unemployment rate sharply higher in a low-hiring environment”.

They added: “The concentration of job gains in a few less cyclically sensitive sectors was potentially signalling heightened vulnerability in the overall labour market.”

The claims data covered the week during which the government surveyed employers for the non-farm payrolls portion of February’s employment report.

Job growth accelerated in January, though nearly all the employment gains came from the healthcare and social assistance sector.

SEE ALSO

US weekly jobless claims fall less than expected

US job growth accelerates in January, jobless rate falls to 4.3%

Wall St gains after stronger-than-expected jobs report

Policymakers and economists say immigration policies were constraining job growth. Lingering uncertainty from import tariffs remained a drag on hiring, while artificial intelligence was also adding another layer of caution, economists said.

The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, increased 17,000 to a seasonally 1.9 million during the week ended Feb 7, the claims report showed.

The so-called continuing claims suggested that laid-off workers were experiencing difficulties in finding new positions.

The median duration of unemployment is near four-year highs. The lack of hiring has significantly impacted recent college graduates who, because of no or limited work history, cannot file for unemployment benefits and are not captured in the claims data. REUTERS