US Weekly Jobless Claims Fall More Than Expected Amid Labour Market Stability

• US initial jobless claims fell more than expected, declining by 23,000 to 206,000 for the week ended February 14, below the 225,000 consensus forecast. The drop follows a late-January rise to 232,000 and is consistent with a stabilising labour market.
• Federal Reserve officials view labour conditions as steady but fragile. Minutes from the January 27–28 FOMC meeting showed the vast majority of policymakers saw signs of stabilisation, though they also highlighted downside risks, including the possibility that weaker labour demand could push unemployment higher in a low-hiring environment.
• Recent employment gains remain concentrated in defensive sectors, with January job growth largely driven by healthcare and social assistance, suggesting limited breadth and potential vulnerability in the broader labour market.
• Structural and policy headwinds are constraining hiring. Economists pointed to immigration policy restrictions, lingering tariff uncertainty, and the growing impact of artificial intelligence adoption as factors contributing to employer caution.
• Continuing claims increased by 17,000 to 1.869Mn for the week ended February 7, indicating that laid-off workers are facing difficulty securing new employment, despite stable inflows into unemployment benefits.
• Broader labour-market indicators also show emerging slack. The median duration of unemployment is near four-year highs, while recent college graduates are particularly affected by weak hiring and are often excluded from claims data due to limited work history, underscoring underlying softness beneath otherwise stable headline indicators.

(Source: Reuters)