Initial jobless claims in the United States for the week ending March 2 came in at 217,000, unchanged from the previous week’s revised level, the Department of Labor said in its report published on Thursday. The 4-week moving average was 212,250, decreasing by 750 week-on-week.
The insured unemployment rate came in at 1.3% for the week ending February 24, unchanged from the previous week’s unrevised rate. Meanwhile, the 4-week moving average was 1,888,250, growing by 10,250 compared to the previous week’s revised average.
The labor market is steadily loosening up, with 1.45 job openings per every unemployed person in January, government data showed on Wednesday. This ratio has dropped from 1.82 a year ago, but remains well above the average of 1.2 during the year before the COVID-19 pandemic.
The Federal Reserve’s Beige Book report on Wednesday said “labor market tightness eased further,” in February but noted “difficulties persisted attracting workers for highly skilled positions.” Fed Chair Jerome Powell told lawmakers on Wednesday that the U.S central bank expected “inflation to come down, the economy to keep growing,” but shied away from committing to any timetable for interest rate cuts.
Since March 2022, the Fed has raised its policy rate by 525 basis points to the current 5.25%-5.50% range.
Claims remain near historically low levels, despite high profile layoffs at the start of the year. Employers are generally reluctant to let go of their workers after struggling to finding labor during and after the pandemic.
Challenger: US job cuts rise to 84,638 in February
Job cuts in the United States stood at 84,638 in January, increasing 3% month on month, Challenger, Gray & Christmas Inc. announced in a report released on Thursday. On an annual basis, the figure rose by 9% from 77,770 cuts registered in the same month in 2023.
The technology sector leads in job cuts this year, although it has seen a significant reduction compared to last year. Financial firms and several other industries like Industrial Goods, Manufacturing, and Energy have seen substantial layoff increases, highlighting sector-specific vulnerabilities. The report underscores a broader trend of cautious hiring, with the lowest year-to-date total for announced hiring plans since records began.
“As we navigate the start of 2024, we’re witnessing a persistent wave of layoffs. Businesses are aggressively slashing costs and embracing technological innovations, actions that are significantly reshaping staffing needs,” stated Andrew Challenger, labor and workplace expert and Senior Vice President of Challenger, Gray & Christmas, Inc.