The latest data from the Labor Department shows that the number of Americans applying for jobless benefits remains at historically low levels, despite a slight uptick last week. For the week ending March 9, filings for unemployment claims inched up by 1,000 to 209,000, with the four-week average coming in at 208,000, a decrease of 500 from the previous week.
Currently, 1.81 million Americans are collecting jobless benefits, reflecting an increase of 17,000 from the previous week. However, this number is still relatively low compared to previous periods.
Weekly unemployment claims are seen as an indicator of U.S. layoffs, and they have stayed low since the significant job losses during the pandemic in 2020. Despite the Federal Reserve's 11 rate hikes since March 2022 to combat high inflation, the labor market has remained robust, with jobs remaining plentiful and the economy showing resilience.
In February, U.S. employers added 275,000 jobs, underscoring the economy's strength even in the face of elevated interest rates. While the unemployment rate ticked up to 3.9% in February, the rate has been below 4% for 25 consecutive months, the longest streak since the 1960s.
Although layoffs have been minimal overall, there has been a recent increase in job cuts, particularly in the technology and media sectors. Companies like Google parent Alphabet, eBay, TikTok, Snap, Cisco Systems, and the Los Angeles Times have announced layoffs. Additionally, UPS, Macy's, and Levi's have also recently reduced their workforce.
Despite these isolated job cuts, the overall labor market in the U.S. remains strong, with jobless claims staying at historically low levels and the economy continuing to perform well amidst the challenges posed by higher interest rates.
