The weekly total of Americans applying for first-time unemployment benefits continues to fluctuate, but the range hasn’t shifted much in the last three years.
According to statistics released by the Labor Department Thursday, the number of Americans filing for jobless benefits rose to 242,000 for the week ending Feb. 22, an increase of 22,000 and the highest level in three months. Analysts projected that 220,000 new applications would be filed.
The four-week average climbed by 8,500 to 224,000.
Some analysts say they expect layoffs ordered by the Department of Government Efficiency to show up in the report in the coming weeks or months, the Associated Press reported.
Joseph Brusuelas, chief economist at tax and advisory firm RSM, told the AP he doesn’t expect a “bursting of the pipes” in layoffs and unemployment — yet.
“For now its more likely to be a steady drip, drip, drip in the pace of firings,” Brusuelas said.
On Wednesday, senior U.S. officials set the government downsizing in motion via a memo dramatically expanding President Donald Trump’s efforts to scale back a workforce. Thousands of probationary employees have already been fired, and now the Republican administration is turning its attention to career officials with civil service protection, the AP reported.
Government agencies have been directed to submit by March 13 their plans for what is known as a reduction in force, which would not only lay off employees but eliminate positions altogether.
Despite showing some signs of weakening during the past year, the labor market remains healthy with plentiful jobs and relatively few layoffs.
The Labor Department reported in early February that U.S. employers added 143,000 jobs in January, significantly fewer than December’s 256,000 job gains. However, the unemployment rate ticked down to an even 4%, signaling a still very healthy labor market.
The consumer price index increased 3% in January from a year ago, up from a 3 1/2 year low of 2.4% in September. The new data shows that inflation has remained stubbornly above the Fed’s 2% target for roughly the past six months after it fell steadily for about a year and a half.
The total number of Americans receiving unemployment benefits for the week of Feb. 15 fell by 5,000 to 1.86 million.
