Business
Unemployment filings dip as U.S. labor market stays strong
By Jake Beardslee · February 8, 2024
In brief…
- Unemployment claims fell slightly last week to 218,000 despite recent tech sector layoffs
- The drop comes even as companies like Google, Snapchat, eBay cut jobs
- Jobless claims remain near historic lows, signaling ongoing labor market strength
- Hiring has proven resilient even as the Fed raised rates aggressively to fight inflation
The number of Americans filing for unemployment benefits fell slightly last week, even as some prominent technology and media companies announced job cuts.
According to the Labor Department, applications for jobless aid declined by 9,000 to 218,000 for the week ending February 3. The four-week moving average, which smooths out some of the weekly volatility, rose by 3,750 to 212,250, according to ABC News.
The drop in claims comes despite recent layoff notices from major firms like Google, eBay, Snapchat parent Snap, and the Los Angeles Times. Just this week, Snap announced plans to cut 10% of its workforce. However, weekly jobless claims remain near historic lows, indicating ongoing labor market resilience.
The strength comes even as the Federal Reserve has raised interest rates aggressively to fight high inflation. The Fed began steadily hiking its benchmark rate in March 2022.
In total, 1.87 million Americans were collecting jobless benefits during the week ending January 27, down 23,000 from the previous week.