The number of Americans filing for unemployment benefits rose sharply last week, reaching the highest level since December, according to data from the Department of Labor. Initial jobless claims for the week ending February 22 climbed to 242,000, up from 220,000 in the prior week. This figure exceeded Wall Street Journal forecasts of 225,000 claims.

Despite the rise in new filings, continuing claims, which track ongoing unemployment, saw a slight decline. For the week ending February 15, continuing claims fell to 1.86 million, down from 1.87 million the previous week. These numbers suggest that while more people are filing initial claims, long-term unemployment levels remain stable.

There is little evidence yet of significant government layoffs tied to the Trump administration’s cost-cutting efforts under the Department of Government Efficiency initiative. Federal unemployment claims, which are reported separately, increased by just one case to 614 for the week ending February 15.

However, some economists worry that federal budget cuts could impact private-sector firms that rely on government contracts. In Washington, D.C., new jobless claims rose to 2,047, but claims declined in the neighboring states of Virginia and Maryland, indicating regional economic variations.

With federal spending cuts and economic uncertainty on the horizon, analysts will closely watch future jobless claims data to assess potential labor market disruptions in the coming months.