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Jobless claim applications ticked down by 1,000 to 219,000 for
the week of Dec. 21, the Labor Department reported Thursday.
That’s fewer than the 223,000 analysts forecast.
Continuing claims, the total number of Americans collecting
jobless benefits, climbed by 46,000 to 1.91 million for the week
of Dec. 14. That's more than analysts projected and the most
since the week of Nov. 13, 2021 when the labor market was still
recovering from the COVID-19 jobs wipeout in the spring of 2020.
The rising level of continuing claims suggests that some who are
receiving benefits are finding it harder to land new jobs. That
could mean that demand for workers is waning, even though the
economy remains strong.
The four-week average of weekly claims, which quiets some of the
week-to-week volatility, inched up by 1,000 to 226,500.
Weekly applications for jobless benefits are considered
representative of U.S. layoffs.
The labor market has hinted at some softening recently but
remains broadly healthy and has held up better than many
economists predicted considering that interest rates have been
elevated for years. The Federal Reserve instituted a series of
rate increases in 2022 and into 2023 to try to tame the
four-decade high inflation that emerged during the U.S.
economy’s rebound from a brief but sharp pandemic recession.
The Fed last week cut its benchmark interest rate for the third
straight time in response to broadly receding inflation, though
it remains above the U.S. central bank’s target of 2%. The Fed
caught markets off guard when it projected just two rate cuts in
2025, down from the previous forecast of four.
Earlier this month, the government reported that U.S. job
openings rebounded to 7.7 million in October from a 3 1/2 year
low of 7.4 million in September, a sign that businesses are
still seeking workers even though hiring has cooled.
In November, U.S. employers added a strong 227,000 jobs,
following a paltry 36,000 in October, when the effects of
strikes and hurricanes had sharply diminished employer payrolls.
The government also revised up its estimate of job growth in
September and October by a combined 56,000.
The government’s December jobs report comes out on Jan. 10.
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