Initial Unemployment Claims Drop to 201,000, As Labor Market Shows No Signs of Cooling Down

Initial unemployment claims fell to 201,000 for the week ended February 17th, down 12,000 from the previous week. New claims have ranged from 189,000-227,000 so far in 2024, an extremely low level historically. The number of ongoing unemployment benefits recipients dipped by 27,000 but remains around pre-pandemic levels. The strong labor market shows little sign of weakening despite higher rates meant to slow inflation. Low unemployment will likely fuel spending and keep the economy growing until the Fed cuts rates later this year as expected.