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Initial jobless claims jumped by 22,000 to 242,000 for the week ending on Saturday, Feb. 22, the Bureau of Labor Statistics said in data released on Thursday, Feb. 27. The previous week's total was revised up slightly to 220,000.
The rise in claims comes as consumer confidence took its steepest monthly dive since August 2021 amid concerns over inflation, tariffs, and the labor market. The Conference Board's Consumer Confidence Index fell 7.0 points to 98.3 in February, with expectations for job growth worsening.
The four-week moving average for jobless claims also climbed to 224,000, the highest since November 2024. Economists are watching closely to see whether layoffs continue to rise in the coming weeks as businesses adjust to shifting economic conditions.
Despite the spike in initial claims, the insured unemployment rate remained at 1.2 percent, unchanged from the previous week. The number of Americans receiving ongoing benefits — known as insured unemployment — fell slightly to 1.86 million for the week ending Saturday, Feb. 15.
The labor market turbulence comes as President Donald Trump announced on social media that 25-percent tariffs on imports from Canada and Mexico would take effect on Thursday, Mar. 4. The new duties have raised concerns about higher costs for raw materials, supply chain disruptions, and potential job losses in industries reliant on cross-border trade.
Rising unemployment claims are the latest troubling economic indicator at the beginning of 2025. January home sales dropped as mortgage rates and prices remained high, worsening affordability issues. Inflation, which unexpectedly surged at the start of the year, has kept pressure on household budgets.
Egg prices spiked 15 percent in January and housing costs rose 4.4 percent since January 2024.
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