The number of Americans filing new unemployment claims remained steady last week while layoffs dropped sharply in February, signaling that the U.S. labor market continues to show resilience despite economic uncertainty.

According to the United States Department of Labor, initial claims for state unemployment benefits were unchanged at a seasonally adjusted 213,000 for the week ending February 28. Economists had expected claims to rise slightly, suggesting the latest data came in stronger than forecasts.

The figures indicate that layoffs remain relatively low, reinforcing the view that the labor market remains stable.

Layoffs Decline Sharply

A separate report from outplacement firm Challenger Gray & Christmas showed that U.S. employers announced 48,307 job cuts in February.

That represents a 55% drop from January and a 72% decline compared with the same month last year.

Hiring plans increased significantly during the month, rising 140% compared with January, although they were still 63% lower than the level recorded in February of the previous year.

Economists say the sharp decline in layoffs suggests businesses remain cautious about reducing staff, even as broader economic conditions remain uncertain.

Labor Market Stabilizing

The labor market has been gradually regaining momentum after experiencing volatility last year amid policy and trade uncertainty linked to tariffs introduced by Donald Trump.

Those tariffs were later struck down by the Supreme Court of the United States, though new global tariffs were subsequently introduced.

Despite these developments, employment conditions have remained relatively stable, suggesting companies are maintaining workforce levels while monitoring economic conditions.

Federal Reserve Reports Mixed Hiring Activity

Recent commentary from the Federal Reserve described hiring activity across the country as generally steady.

Several districts reported little change in employment levels, although some businesses cited rising costs, softer demand, and economic uncertainty as reasons for cautious hiring.

Meanwhile, continuing claims — which measure the number of people receiving unemployment benefits after their initial claim — increased by 46,000 to a seasonally adjusted 1.868 million in the week ending February 21.

Attention Turns to Upcoming Jobs Report

Markets are now awaiting the upcoming U.S. employment report, which will provide a broader view of the labor market.

Economists expect nonfarm payrolls to rise by around 59,000 jobs in February after a gain of 130,000 in January. The national unemployment rate is forecast to remain unchanged at approximately 4.3%.

A steady labor market could reinforce expectations that the Federal Reserve will remain cautious when considering future interest-rate cuts.