WASHINGTON (AP) — The number of Americans filing for unemployment benefits jumped by 22,000 last week to a seasonally adjusted 242,000, marking the highest level in several weeks, the U.S. Department of Labor reported Thursday.
The latest figure for the week ending Feb. 22 rose from the previous week’s revised total of 220,000 and exceeded analysts’ expectations. The four-week moving average, which smooths out weekly volatility, also climbed by 8,500 to 224,000.
The increase in initial claims suggests a potential softening in the labor market, though unemployment remains historically low. The insured unemployment rate, which measures the percentage of workers receiving jobless benefits, remained unchanged at 1.2%.
Insured Unemployment Declines
Despite the rise in new claims, the number of people continuing to receive unemployment benefits—known as insured unemployment—fell by 5,000 to 1.86 million for the week ending Feb. 15. This marks a slight improvement, though the four-week moving average of continued claims ticked up by 3,000 to 1.87 million.
Unadjusted initial claims, which do not account for seasonal fluctuations, fell by 2,997 to 220,541 last week. That figure is still notably higher than the 195,774 claims reported during the same period in 2024.
State-by-State Changes
Several states reported significant changes in unemployment claims. Kentucky and Tennessee saw the most significant increases, with claims rising by 3,012 and 2,766 due to layoffs in the manufacturing sector. Washington, Michigan, and Minnesota also experienced upticks in claims.
Conversely, California saw the most significant decline, with 5,530 fewer claims, followed by Pennsylvania, Florida, New Jersey, and New York, which all reported decreases of several hundred claims each.
Labor Market Outlook
While the latest report signals some labor market cooling, overall jobless claims remain relatively low compared to historical trends. The Federal Reserve and economists continue to monitor these figures as they assess inflation and potential shifts in interest rate policy.
The latest data follows a strong but moderating job market, with employers still adding jobs at a steady pace. Analysts note that while hiring has slowed from the rapid post-pandemic recovery, worker demand remains solid in many sectors.
Extended benefits programs remained essentially unchanged, with no states triggering additional unemployment aid. Federal unemployment claims for former government employees and military veterans saw minimal movement.
Looking Ahead
The latest jobless claims figures come as financial markets and policymakers monitor employment trends closely. The Federal Reserve has signaled that it is monitoring labor market conditions as it weighs potential adjustments to interest rates later this year.
As businesses adjust to shifting economic conditions, jobless claims will remain a key indicator of workforce stability. The following weekly unemployment report, set for release on March 6, will provide further insight into whether this week’s rise in claims marks the beginning of a trend or a temporary fluctuation.
For more details, visit the U.S. Department of Labor’s official website at www.dol.gov.
Anna Kim is a media reporter for the Rockland Daily News, covering the business of Rockland County and digital disruption in the entertainment industry. She has been a member of the Company Town team for more than a decade. She previously wrote for the Miami Herald and the Palm Beach Post. A native of Wyoming, she is a graduate of the University of Colorado and Columbia University