During the past year, the labor market, despite some signs of weakening, remains stable, with a surplus of job openings and relatively low layoff levels. According to this Ministry of Labor, in January, American employers added 143 thousand jobs, which is significantly less than the 256 thousand created in December.
The decrease in applications for unemployment benefits in the U.S. over the past week indicates that the labor market remains stable ahead of expected layoffs in the federal government. The number of Americans applying for help related to job loss dropped by 21 thousand to 221 thousand for the week ending March 1.
"The key figure consists of 7 thousand IRS employees, on an experimental basis with one year or less of experience who were laid off from the organization in February," the report notes. However, the unemployment rate decreased to 4 percent, indicating high stability in the labor market.
Overall, the level of unemployment is still historically low, but some large companies have already announced staffing reductions this year. For example, companies like Workday, Dow, CNN, Starbucks, Southwest Airlines, and Meta, which owns Facebook, are planning to downsize by 2025. In general, the number of Americans receiving unemployment benefits continues to increase.
Analysts suggest that anticipated layoffs, conducted by the Department of Government Efficiency (DOGE), may be reflected in the report in the coming weeks or months. Government agencies must submit their plans by March 13, including proposals for workforce reductions and the elimination of positions.
Such actions occur within the framework of the measures taken by President Donald Trump to reduce the size of the federal workforce through DOGE, led by billionaire Elon Musk. Currently, thousands of employees in experimental positions have already been laid off, and at this time, the Republican administration is paying attention to career personnel with protected status in the civil service.
