U.S. Jobless Claims Dip More Than Expected To 221,000

(RTTNews) - With the more closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits fell by more than expected in the week ended March 1st.

The report said initial jobless claims dipped to 221,000, a decrease of 21,000 from the previous week's unrevised level of 242,000. Economists had expected jobless claims to edge down to 235,000.

Meanwhile, the Labor Department said the less volatile four-week moving average crept up to 224,250, an increase of 250 from the previous week's unrevised average of 224,000.

Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also increased by 42,000 to 1.897 million in the week ended February 22nd.

The four-week moving average of continuing claims also rose to 1,866,000, an increase of 2,750 from the previous week's revised average of 1,863,250.

"DOGE-driven staff reductions are having an impact under the surface, but the labor market isn't showing major signs of rolling over," said Nationwide Financial Markets Economist Oren Klachkin.

"While it is getting harder to find a new job, continuing claims continue to send a relatively reassuring signal," he added. "Looking ahead, we think hiring and job opportunities will become scanter as the year progresses."

On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of February.

Economists currently expect employment to climb by 160,000 jobs in February after rising by 143,000 jobs in January. The unemployment rate is expected to remain unchanged in February after edging down to 4.0 percent in January.