U.S. jobless claims fall to 213,000 in latest week

Initial applications for U.S. unemployment benefits fell by 7,000 to 213,000 in the week ended Feb. 8, the Labor Department said Thursday, keeping claims near historically low levels. Economists surveyed by The Wall Street Journal had expected a smaller decline, forecasting claims would fall by 4,000 to 215,000.

The weekly claims figure is closely watched by investors and policymakers because it offers an early read on layoffs and labor-market momentum. Initial claims measure applications filed by workers seeking unemployment insurance for the first time, so lower readings tend to indicate employers are holding on to staff.

The latest number matched the level reported in the comparable week a year earlier, when claims also stood at 213,000, according to the Labor Department figures cited by MarketWatch.

The prior week’s data were revised slightly higher. Claims for that period rose by 12,000 to 220,000, compared with the initial estimate of an 11,000 increase to 219,000.

Economists cited by MarketWatch said resilient consumer demand has helped keep the labor market firm. Consumer spending can support hiring by sustaining revenue for businesses, reducing pressure to cut payrolls when demand holds up.

The report adds to evidence that layoffs remain contained, even as financial markets continue to assess the path of growth, inflation and interest rates. Weekly claims can be volatile, and the Labor Department’s revisions show how the initial reading may change as more complete state-level data are incorporated.

For monetary policy, jobless claims are one of several labor indicators followed alongside payroll growth, unemployment and wages. The latest claims data, by itself, points to continued restraint in job cuts rather than a broad deterioration in employment conditions.

This story draws on original reporting from MarketWatch.