US Jobless Claims Decline But Exceed Expectations Amid Winter Weather Disruptions

Initial jobless claims in the United States declined last week but came in above market expectations, signalling that labour market conditions remain steady, though not as strong as forecast. According to data released by the US Labor Department, applications for unemployment benefits fell by 5,000 to 227,000 for the week ended February 7. Economists surveyed in a Bloomberg poll had projected claims at around 223,000, meaning the actual reading exceeded estimates. The latest decline follows a sharp increase in filings during the previous week, which analysts attributed largely to severe winter weather disruptions that temporarily affected employment activity and reporting. Despite coming in higher than forecasts, claims remain within a historically low range, suggesting layoffs are still limited and the broader labour market continues to show resilience. Economists typically view weekly jobless claims as a timely indicator of labor-market health and a signal of underlying economic momentum. The data indicate that recent volatility in claims may reflect temporary factors rather than a sustained deterioration in employment conditions. Federal Reserve Governor Stephen Miran said interest rate cuts are still possible despite strong job growth, emphasizing the Fed’s flexible approach. He also noted the Fed’s future direction depends on White House and Senate decisions, as Trump may nominate Kevin Warsh as chair. Get the latest stories delivered straight to your inbox.