In the United States, the number of people filing new claims for unemployment benefits fell last week, according to Reuters.
Initial claims for state unemployment benefits decreased by 1,000 to a seasonally adjusted 213,000 for the week ending 7 March, according to the Labour Department’s statement on Thursday. The turnaround could help ease concerns about a weakening labour market after an unexpected drop in employment in February.
Economists had forecast 215,000 claims for the latest week. Claims have been hidden in the range of 199,000-232,000 this year amid low layoffs. They remain at levels consistent with a stable labour market. The government reported last week that non-farm payrolls fell by 92,000 jobs in February, the sixth decline since January 2025 and the second largest.
The decline was due to severe winter weather, a healthcare workers’ strike, and payback after oversized wage growth in January, as well as a general reluctance by businesses to increase staffing levels due to uncertainty over import tariffs and the integration of artificial intelligence into some jobs.
Slow hiring has left many unemployed, including recent college graduates, with prolonged periods of unemployment. The number of people receiving unemployment benefits after the first week of assistance, a proxy for hiring, fell by 21,000 to a seasonally adjusted 1.85 million in the week ending 28 February, a claims report showed.
Among other reasons for the decline in wages are US President Donald Trump’s tariffs, which were subsequently overturned by the Supreme Court, as well as the US-Israeli war with Iran, which drove up oil and petrol prices.
