The Number of Americans Seeking Jobless Benefits Falls as Employers Continue to Hold on to Workers

U.S. applications for unemployment benefits fell last week as employers continue to retain workers despite resurgent inflation and elevated interest rates.

The number of Americans filing for jobless benefits fell by 7,000 to 213,000 for the week ending February 8, the Labor Department said Thursday. Analysts projected that 215,000 new applications would be filed.

Weekly applications for jobless benefits are considered representative of layoffs.

The four-week average, which smooths out some of the week-to-week volatility, inched down by 1,000 to 216,000.

Despite showing some signs of weakening during the past year, the labor market remains healthy with plentiful jobs and relatively few layoffs.

Last week, the Labor Department reported that U.S. employers added 143,000 jobs in January, significantly fewer than December’s 256,000 job gains. However, the unemployment rate ticked down to an even 4%, signaling a still very healthy labor market.