Jobless claims for the week ending February 22 climbed to a seasonally adjusted 242,000, marking an increase of 22,000 from the prior week’s revised figures, according to the U.S. Department of Labor. The surge exceeded the expected 225,000 claims projected by Dow Jones economists, raising concerns about the labor market’s stability.
Unemployment Trends Show Labor Market Strains
This latest reading matches the highest level since early October 2024, fueling uncertainty about ongoing employment dynamics. Notably, Washington, D.C. saw a sharp rise in jobless claims, reaching 2,047—a 26% jump from the previous period and the highest for the capital since March 2023.
Despite this surge, surrounding states such as Virginia and Maryland reported slight declines. Even California, home to a significant number of federal workers, recorded a drop in claims.
Federal Workforce and Corporate Layoffs Impact Claims
The rise in claims coincides with federal job cuts initiated through efforts to streamline government departments. Additionally, layoffs at major corporations, including Starbucks and Southwest Airlines, may be contributing to the trend. Despite these developments, continued claims—reflecting those receiving unemployment benefits for more than one week—slightly decreased to 1.86 million.
New England states faced notable increases, particularly Massachusetts, where jobless claims spiked to 9,179. Similarly, Rhode Island filings more than tripled to nearly 2,964.
Durable Goods Orders Provide an Economic Bright Spot
Amid the concerning labor market data, the U.S. economy received some positive signals with a 3.1% rise in durable goods orders for January, led by strong demand for aircraft, appliances, and computing equipment. This increase followed a revised 1.8% decline in December.
However, when excluding the 9.8% surge in transportation-related orders, overall durable goods purchases remained flat, indicating uneven business investment sentiment.
Upcoming Tariffs Expected to Influence Trade Flows
On social media, President Donald Trump announced new 25% tariffs on imports from Mexico and Canada, set to take effect on March 4. Concurrently, goods from China will face an additional 10% duty. These policy changes could impact international trade flows and manufacturing sector resilience.
GDP Growth Holds Steady, Inflation Signals Rise
The latest estimate from the Commerce Department maintains that the U.S. economy expanded at an annualized 2.3% rate in Q4 2024. Meanwhile, inflation data showed an upward revision, with the personal consumption expenditures (PCE) price index climbing 2.4%2.7%
