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US Jobless Claims Rise as Labor Market Shows Signs of Softening

US Jobless Claims Rise

The number of Americans filing for unemployment benefits increased last week, signaling a potential cooling in the labor market. According to the Department of Labor, initial jobless claims for the week ending February 1 rose to 219,000, up from 208,000 in the prior week. The figure came in higher than the 214,000 expected by economists surveyed by The Wall Street Journal.

Meanwhile, continuing jobless claims, which reflect the number of individuals receiving unemployment benefits on an ongoing basis, climbed to 1.89 million for the week ending January 25. This marks an increase from 1.85 million in the previous period, reinforcing the gradual uptick in unemployment filings over the past year.

Despite the rise in claims, there are no immediate signs of a sharp labor market downturn. While job growth has cooled from the rapid post-pandemic recovery, the employment landscape has remained relatively stable since last summer.

Investors and policymakers are closely watching upcoming labor market data, with January’s jobs report set for release on Friday. Economists expect the report to show that the U.S. economy added 169,000 jobs last month, with the unemployment rate holding steady at 4.1%.

The latest data will provide further insights into the strength of the labor market and its implications for the Federal Reserve’s monetary policy decisions in the coming months.

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