US Unemployment Claims Inch Down Slightly

Layoffs remain stable despite weakening job market

Mar. 12, 2026 at 4:51pm

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U.S. applications for unemployment benefits dipped slightly last week, with 213,000 new claims filed. While weekly layoffs have remained in a historically low range, a number of high-profile companies have announced job cuts recently, and the labor market appears stuck in a 'low-hire, low-fire' state.

Why it matters

The number of unemployment claims is a key indicator of the health of the job market. Despite some recent high-profile layoffs, the overall level of jobless claims remains low, suggesting the labor market is still relatively stable even as broader economic conditions weaken.

The details

The Labor Department reported that U.S. employers unexpectedly cut 92,000 jobs in February, a sign that the labor market remains under strain. Revisions also slashed 69,000 jobs from December and January payrolls, nudging the unemployment rate up to 4.4%. Job openings also fell in December to the lowest level in more than five years.

  • For the week ending March 7, new unemployment claims fell by 1,000 to 213,000.
  • In February, U.S. employers unexpectedly cut 92,000 jobs.
  • In December, job openings fell to the lowest level in more than five years.

The players

Federal Reserve

The U.S. central bank that sets monetary policy, including interest rates, to manage inflation and employment.

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What’s next

The Labor Department's personal consumption expenditures (PCE) inflation data, the Federal Reserve's preferred inflation gauge, will be released on Friday, just days before the Fed meets to decide on interest rates.

The takeaway

While the labor market remains relatively stable, with low levels of layoffs, the broader economic conditions are weakening, with job cuts and a decline in job openings. This suggests the Federal Reserve may need to continue its efforts to manage inflation and employment through monetary policy adjustments.