US Initial Jobless Claims Fall Sharply

Initial jobless claims in the US fell by 23,000 from the previous week to 206,000 on the second week of February, well below market expectations of 225,000, to swing back to levels that are well below the average through the start of last year. In turn, continuing claims, which serve as a proxy for outstanding unemployment in the US, inched higher by 17,000 to 1,869,000 on the first week of February. The data continued to reflect a stable labor market with a slow firing momentum offsetting a soft hiring momentum, consistent with view from the Federal Reserve. Initial claims filed by federal employees, which have been under scrutiny as markets measure the impact of the US government shutdown, rose by 80 to 695.

Initial jobless claims in the US inched down by 5,000 from the previous week to 227,000 in the first reading for February, above market expectations of 222,000, to remain near the eight-week high from the upwardly revised value in the earlier period. Consistently, continuing claims rose by 21,000 to 1,862,000 in January after having dropped to the lowest level since September 2024 halfway through the month. The increase remained attributed to the business disruptions following the series of winter storms across multiple parts of the country, prompting households to apply for unemployment benefits. Initial claims filed by federal employees, which have been under scrutiny as markets measure the impact of the US government shutdown, rose by 47 to 615.

Initial jobless claims in the US rose by 22,000 from the previous week to 231,000 on the last week of January, sharply above market expectations of 212,000, to mark the largest magnitude of initial claims in nearly two months. Consistently, continuing claims rose by 25,000 to 1,844,000 in the previous week after having dropped to the lowest level since September 2024 halfway through the month. The rise in claims was attributed to business disruptions following the series of winter storms across multiple parts of the country, prompting households to apply for unemployment benefits, and maintaining the view that the US labor market remains in a low firing and low hiring trend. Initial unemployment claims from federal employees, which have been under scrutiny as markets measure the impact of the US government shutdown, fell by 230 to 568.