New U.S. unemployment claims edged lower last week, easing concerns about a potential labor market slowdown following an unexpected employment decline in February.
Initial claims for state jobless benefits fell by 1,000 to 213,000 for the week ending March 7, according to the Labor Department.
Economists surveyed by Reuters had expected 215,000 claims, placing the latest reading slightly below forecasts and within a range consistent with low layoffs.
Claims have remained between 199,000 and 232,000 this year, suggesting a stable labor market despite recent economic uncertainty.
Government data showed nonfarm payrolls dropped by 92,000 jobs in February, the sixth decline since January 2025 and the second-largest decrease.
Analysts attributed the fall to severe winter weather, healthcare worker strikes, and employer caution amid tariff uncertainty and expanding AI integration.
Meanwhile, the U.S. Supreme Court struck down sweeping tariffs introduced by President Donald Trump, though a new 10% global tariff was later announced.
Continuing unemployment claims fell by 21,000 to 1.85 million, signaling modest hiring, while the unemployment rate rose slightly to 4.4% in February.
