Number of Americans filing for unemployment benefits rises to 242,000, highest level in 3 months

Applications for U.S. jobless benefits rose to a three-month high last week but remained within the same healthy range of the past three years.  The number of Americans filing for jobless benefits rose by 22,000 to 242,000 for the week ending Feb. 22, the Labor Department said Thursday. Analysts projected that 220,000 new applications would be filed.

Weekly applications for jobless benefits are considered a proxy for layoffs. The four-week average, which evens out some of the week-to-week volatility, climbed by 8,500 to 224,000. Some analysts say they expect layoffs ordered by the Department of Government Efficiency to show up in the report in the coming weeks or months.

Joseph Brusuelas, chief economist at tax and advisory firm RSM, said he doesn't expect a “bursting of the pipes” in layoffs and unemployment — yet. “For now its more likely to be a steady drip, drip, drip in the pace of firings,” Brusuelas said. On Wednesday, senior U.S. officials set the government downsizing in motion via a memo dramatically expanding President Donald Trump’s efforts to scale back a workforce. Thousands of probationary employees have already been fired, and now the Republican administration is turning its attention to career officials with civil service protection.