(Feb 20): Applications for US unemployment benefits were little changed last week, hovering around pre-Covid levels that indicate solid demand for workers.

Initial claims increased by 5,000 to 219,000 in the week ended Feb 15, according to Labor Department data released on Thursday. The median forecast in a Bloomberg survey of economists called for 215,000 applications.

Continuing claims, a proxy for the number of people receiving benefits, increased to 1.87 million in the week ended Feb 8.

Economists are looking to the jobless claims series for early signs of the impact of the Trump administration’s firings across the federal workforce. However, the weekly data can be volatile, and it’s unclear how many government workers are eligible for unemployment benefits.

In the DMV area — which refers to Washington, DC, Maryland and Virginia — claims actually fell last week after a surge in the prior period. Applications in the capital itself stand at the highest in almost two years.

Nationwide, initial claims have been generally consistent with levels seen in 2019, supporting the Federal Reserve’s intention to keep interest rates on hold until inflation progress resumes. That said, some high-profile companies like Meta Platforms Inc and Southwest Airlines Co have said they plan to reduce staff.

The four-week moving average of new applications, a metric that helps smooth out fluctuations from week-to-week, was little changed at 215,250. 

Before adjusting for seasonal factors, initial claims fell by over 10,000 last week, with nearly half of that due to California.

Uploaded by Felyx Teoh