Digits: The number of Americans filing for jobless benefits fell to 192,000 last week and returned to near historic lows, suggesting that layoffs in the US remain very low despite further strain on the economy. New US applications for benefits fell by 20,000 from 212,000 in the previous week, the government said on Thursday. Numbers are adjusted seasonally. In early March, new jobless filings topped 200,000 for the first time in two months. Yet most of the increase occurred in New York two weeks ago and is likely linked to the school winter break. Claims in New York subsided last week and returned to normal. The number of people applying for unemployment benefits is one of the best barometers of whether the economy is doing better or worse. New jobless claims remain near historically low levels. Economists polled by The Wall Street Journal had forecast a total of 205,000 new claims in the seven days ending March 11. Key Details: 35 of the 53 US states and territories that report jobless claims showed declines last week. Eighteen hike posts. New jobless filings in New York fell by 30,122 to 14,817, erasing an increase of the same size from the previous week. Claims in the state spike during school breaks several times a year. The number of people collecting unemployment benefits nationwide, meanwhile, fell by 29,000 to 1.68 million in the week ended March 3. That number is reported with a one-week gap. These continuous claims are still low, but the gradual increase since last spring suggests that people who lose their jobs are taking longer to find a new job. Big picture: Jobless claims are the first indicator to signal danger as the US heads into recession. Despite an increase in the number of large companies announcing layoffs, they remain remarkably low. Economists expect hiring to slow and layoffs to increase later in the year, however, as rising interest rates weigh on the economy and reduce demand for workers. Looking ahead: “Labor market conditions remain exceptionally tight,” said Michael Pearce, a leading US economist at Oxford Economics. “There are still few signs that the pick-up in layoffs announced in recent months, particularly in the tech sector, is driving up unemployment.” “Many announced layoffs do not pan out, and those who are laid off are quickly looking for work elsewhere, reflecting the ongoing imbalance between labor demand and supply,” he added. Market Reaction: The Dow Jones Industrial Average DJIA, +0.42% and the S&P 500 SPX, +1.04% fell in Thursday’s trade. The failure of Silicon Valley Bank last week has put stocks under pressure and raised questions about the soundness of the US financial system.
