US weekly jobless claims fall more than expected amid labor market stability

A “now hiring” sign is displayed on a local business after, U.S. employment growth slowed more than expected in July, in Encinitas, California, U.S. August 1, 2025. REUTERS/Mike Blake · Reuters

Reuters

Thu, February 19, 2026 at 10:45 PM GMT+9 2 min read

WASHINGTON, Feb 19 (Reuters) - The number of Americans filing new applications for unemployment benefits fell more than expected last week, consistent with a stabilizing ‌labor market.

Initial claims for state unemployment benefits dropped 23,000 to a seasonally ‌adjusted 206,0000 for the week ended February 14, the Labor Department said on Thursday. Economists polled by ​Reuters had forecast 225,000 claims for the latest week. Last week’s drop marked a signficant decline in claims since they jumped to 232,000 at the end of January.

Minutes of the Federal Reserve’s January 27-28 policy meeting published on Wednesday showed the “vast majority of participants ‌judged that labor market conditions ⁠had been showing some signs of stabilization.” Still, concerns over downside risks to the labor market remained.

The minutes also noted some policymakers “pointed to ⁠the possibility that a further fall in labor demand could push the unemployment rate sharply higher in a low-hiring environment or that the concentration of job gains in a few ​less cyclically ​sensitive sectors was potentially signaling heightened vulnerability ​in the overall labor market.”

The claims ‌data covered the week during which the government surveyed employers for the nonfarm payrolls portion of February’s employment report. Job growth accelerated in January, though nearly all the employment gains came from the healthcare and social assistance sector.

Policymakers and economists say immigration policies were constraining job growth. Lingering uncertainty from import tariffs remained a drag on ‌hiring while artificial intelligence was also adding another ​layer of caution, economists said.

The number of people receiving ​unemployment benefits after an initial ​week of aid, a proxy for hiring, increased 17,000 to a ‌seasonally 1.869 million during the week ended ​February 7, the claims ​report showed.

The so-called continuing claims suggested that laid-off workers were experiencing difficulties finding new positions.

The median duration of unemployment is near four-year highs. The lack ​of hiring has significantly impacted ‌recent college graduates, who because of no or limited work history, cannot ​file for unemployment benefits and are not captured in the claims data.

(Reporting ​by Lucia Mutikani; Editing by Chizu Nomiyama)

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