Applications for US unemployment benefits fell last week and returned to muted levels seen at the start of the year, offering some relief after other reports pointed to worsening labor-market conditions.
Initial claims decreased by 21,000 to 221,000 in the week ended March 1, lower than analysts anticipated. However continuing claims, a proxy for the number of people receiving benefits, rose to an almost three-year high reached in January, a sign those out of work are having more trouble finding new positions.
Separate data from outplacement firm Challenger, Gray & Christmas published earlier Thursday showed February had the highest number of job-cut announcements since mid-2020, led by federal agencies, as well as retail and technology firms.
The Challenger report raised concerns about a coming deterioration in the labor market as the Trump administration moves to shrink the federal government and tariffs weigh on business decisions. Multiple large companies have said they’re cutting jobs in recent weeks, including HP Inc., Walt Disney Co. and Grubhub.
US stock futures pared losses while Treasuries pared gains after the release of the data.
Before adjusting for seasonal factors, the Washington, DC-Maryland-Virginia region saw filings fall 6,556 from 7,150, pulling back from the highs in early February but remaining above levels seen late last year.
Filings by out-of-work federal employees are not included in those figures and reported separately. In the week ended Feb. 22, the latest available for this category, claims almost tripled to 1,634 from 614 the previous week. That number will be updated by the Department of Labor for the week ended March 1 later Thursday.
Data published Wednesday by ADP Research showed hiring at private-sector US companies slowed in February to the lowest pace since July as services firms shed jobs. The government’s monthly employment report due Friday is expected to show a pick in job growth, based on economists’ forecasts. Data for the report was collected prior to many of the federal cuts.
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