US weekly jobless claims rise slightly; unemployment rate likely unchanged

The number of Americans filing new applications for jobless benefits increased slightly last week and the unemployment rate appeared to hold steady in February amid a stable labor market.

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The weekly jobless claims report from the Labour Department suggested the labour market remained in a “low-hire, low-fire” state, and supported economists’ expectations that the Federal Reserve would not cut interest rates before Fed Chair Jerome Powell’s term ends in May.

The labour market is regaining its footing after hitting a soft patch last year amid uncertainty economists attributed to President Donald Trump's broad tariffs.

“The data show no sign of the layoffs we would expect in a weakening labor market during the early days of a hypothetical recession,” said Carl Weinberg, chief economist at High Frequency Economics. “That will jolly up traders who believe the Fed will not cut rates anytime soon, given a steady labor market and inflation above target.”

Initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 212,000 for the week ended February 21. Economists polled by Reuters had forecast 215,000 claims for the latest week. Last week's claims included the Presidents’ Day holiday, which could have impacted the data. Still, claims were below the levels seen during the same period last year.

The U.S. Supreme Court last Friday struck down the tariffs, which Trump pursued under a law meant for use in national emergencies. Trump swiftly imposed a 10% global tariff for 150 days to replace some of the emergency duties, before raising the rate to 15% over the weekend.