New applications for unemployment benefits edged lower last week, remaining near historically low levels in a robust U.S. labor market.
Initial jobless claims, a proxy for layoffs, fell by 15,000 to a seasonally adjusted 214,000 for the week ended March 12, the Labor Department said Thursday. The four-week moving average, which smooths out week-to-week volatility, decreased to 223,000, compared with the previous week’s revised 231,750.
Continuing claims, a proxy for the number of people receiving payments from state unemployment programs, fell to 1.41 million on the week ended March 5, down from 1.49 million the week earlier. Continuing claims are reported with a one-week lag.
The labor market has shown signs of strength so far this year. February saw robust payroll gains and job openings remained near a record high in January—though inflation is high and Russia’s invasion of Ukraine has created new economic uncertainty. Wages have continued to grow at a brisk pace, though they slightly cooled last month.
Meanwhile, U.S. Covid-19 cases and hospitalizations related to the Omicron variant have significantly declined in recent weeks. The Omicron surge disrupted some business activity earlier this year, with millions of people missing work, but had limited impact on the tight U.S. labor market.
The Federal Reserve on Wednesday said it would raise interest rates by a quarter percentage point and penciled in additional increases for later this year to cool the economy and tame inflation. Fed Chairman Jerome Powell, speaking at a press conference on Wednesday, said “labor supply remains subdued,” making it more difficult for employers to hire while pushing wages higher.
“The demand for labor is really strong and the bounce-back in labor supply is also progressing, but it’s not complete yet,” said Andrew Flowers, labor economist at Appcast, a recruiting and job-advertising company. “Why wouldn’t labor supply return with nominal wages rising as fast as they are?”
The tight labor market continues to limit layoffs and has many employers scrambling for ways to attract and retain workers.
Centura Health, a healthcare system of 17 hospitals that serves Colorado and western Kansas, has increased pay and plans to roll out new benefits, like child-care assistance and a loan forgiveness program starting in the summer, said Sebastien Girard, senior vice president and chief people officer. He said these measures are necessary to attract new workers and retain current employees.
“We need to adapt to this new reality. We just have to think differently on how to address some of the needs we’re going to have in terms of the workforce,” Mr. Girard said. “It’s so hard to bring people in that retention is the way to be successful.”
Write to Bryan Mena at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
