Chicago – March 06, 2025
The number of Americans filing for unemployment benefits fell more than expected last week, showing that the job market stayed strong in February. However, challenges could be ahead due to new tariffs on imports and big government budget cuts.
A report on Thursday revealed that layoffs by U.S. companies jumped in February, reaching levels last seen during past recessions. Many of these job losses were tied to government cuts, canceled contracts, and worries about trade issues. “There is growing evidence that uncertainty about government policies and high interest rates are leading to more job cuts,” said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics.
The Labor Department reported that initial claims for state unemployment benefits fell by 21,000 to a seasonally adjusted 221,000 for the week ending March 1. Economists had predicted claims would be around 235,000.
This drop erased the previous week’s increase, which had pushed claims to a two-month high. That rise was blamed on snowstorms and difficulties adjusting for seasonal patterns around the Presidents Day holiday.
