US Jobless Claims Drop To 221,000, Returning To Muted Levels

Applications for US unemployment benefits fell last week, returning to muted levels seen at the start of the year. 

Initial claims decreased by 21,000 to 221,000 in the week ended March 1. The median forecast in a Bloomberg survey of economists called for 233,000 applications.

Continuing claims, a proxy for the number of people receiving benefits, rose to 1.9 million in the previous week, according to Labor Department data released Thursday. That's close to a three-year high reached in January, and a sign those out of work are having more trouble finding new positions.

Economists are watching weekly claims closely for any sign of deterioration in the labor market as the Trump administration moves to shrink the federal government and concerns around the impact from tariffs weigh on business decisions.

Multiple large companies have said they're cutting jobs, including HP Inc., Walt Disney Co. and Grubhub. And data from outplacement firm Challenger, Gray & Christmas showed February had the highest number of job-cut announcements since mid-2020, led by firings at federal agencies.

Claims filed by out-of-work federal workers are reported separately in the report. In the week ended Feb. 22, the latest available for this category, claims almost tripled to 1,634 from 614 the previous week.