US jobless claims fall signals stable labour market

The number of Americans filing new applications for unemployment benefits unexpectedly fell last week, pointing to stable labor market conditions and a rebound in job growth in March.

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The weekly jobless claims report from the Labor Department on Thursday, the most timely data on the economy's health, showed no impact yet on the jobs market from the dragging war in the Middle East, which has sent global oil and domestic gasoline prices soaring. Economists have warned that higher energy prices and tightening financial conditions could undermine consumer and business spending and be a drag on the labor market.

"Producers are unlikely to fire staff while there is a strong chance the jump in prices is temporary," said Samuel Tombs, chief US economist at Pantheon Macroeconomics. "But elevated uncertainty, the recent tightening of financial conditions and high borrowing costs for small businesses will continue to weigh on hiring." Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 205,000 for the week ended March 14, the Labor Department said on Thursday. Economists polled by Reuters had forecast 215,000 claims for the latest week.

The government introduced new seasonal factors for 2026 and revised the seasonal factors from 2021 through 2025. Seasonal factors are the model used to strip out seasonal fluctuations from the series. Claims data was revised from 2021 through 2025.