In Washington, the latest data on unemployment benefits shows that applications for jobless aid remained stable last week, while ongoing claims reached the highest number seen in three years.
The Labor Department indicated that jobless claims decreased slightly by 1,000, bringing the total to 219,000 for the week ending December 21, which is below the anticipated figure of 223,000 from analysts.
However, the number of continuing claims, representing individuals actively receiving unemployment benefits, increased by 46,000, totaling 1.91 million for the week ending December 14.
This increase surpasses projections and marks the highest level since mid-November 2021, a time when the job market was still rebounding from the significant disruptions caused by the COVID-19 pandemic in 2020.
The rise in continuing claims indicates that some beneficiaries are encountering challenges in finding new employment, which may suggest a decline in worker demand, despite the overall strength of the economy.
The four-week moving average of jobless claims, which helps to smooth out fluctuations, saw a slight uptick of 1,000, resulting in an average of 226,500 applications.
These weekly applications are typically viewed as reflective of layoffs across the United States.
While signs of a labor market slowdown have emerged recently, it remains generally robust, performing better than many economists had anticipated in light of prolonged elevated interest rates.
To combat 40-year-high inflation that arose during the pandemic recovery, the Federal Reserve implemented a series of rate hikes throughout 2022 and into 2023.
Last week, the Fed trimmed its benchmark interest rate for the third consecutive time due to a notable decrease in inflation, though it still exceeds the central bank’s target of 2%.
In a surprising turn, the Fed adjusted its outlook to predict only two rate cuts in 2025, revising down from an earlier estimate of four.
Earlier reports indicated a rebound in job openings within the U.S., rising to 7.7 million in October from a low of 7.4 million in September, suggesting that companies continue to seek labor despite a cooling hiring trend.
In November, U.S. employers reported adding a robust 227,000 new jobs, a significant increase following October’s meager addition of only 36,000—affected by labor strikes and hurricanes.
Additionally, the job growth figures for September and October were revised upwards, adding a combined total of 56,000 jobs.
The upcoming jobs report for December is scheduled for release on January 10, further shedding light on the state of employment in the U.S.
