The number of Americans who filed first-time claims for unemployment assistance is on the rise.
U.S. applications for jobless benefits rose to 219,000 for the week ending February 1, according to statistics released by the Labor Department Thursday. That’s up by 11,000 from the previous week.
The four-week average, which evens out some of the weekly volatility, rose by 4,000 to 216,750.
Last month, the Labor Department reported that job growth in December surged and unemployment fell. Employers added 256,000 jobs in the final month of 2024 and the unemployment rate ticked down to 4.1%, The Associated Press reported.
The final jobs report of 2024 showed that the economy and hiring were able to grow at a solid pace even with interest rates much higher than they were before the pandemic.
The Labor Department was expected to release January employment figures early Friday. Economists surveyed by FactSet believe that U.S. employers added 170,000 jobs in the first month of 2025, weaker than December but also still healthy, the AP reported.
Last week, the Federal Reserve left its benchmark lending rate alone after issuing three cuts late in 2024. Fed officials are keeping their eyes on inflation and the labor market for signs of a potentially weakening economy. They expect only two rate cuts this year, down from previous projections of four.
The total number of Americans receiving unemployment benefits for the week of January 25 climbed to 1.89 million, an increase of 36,000 from the previous week.
