US jobless claims have dropped to their lowest level since March, with 211,000 new applications filed last week. The four-week average of claims fell by 3,500 to 223,250, indicating that most American workers enjoy unusually high job security.
The overall number of recipients receiving unemployment benefits has also decreased, falling by 52,000 to 1.84 million, the lowest since September. Economists at Jefferies described the drop as “encouraging” but cautioned against seasonal fluctuations around the holidays.
In contrast to the strong hiring days in 2021-2023, the US job market has cooled significantly. Average monthly job creation from November is down from 251,000 in 2023 and 377,000 in 2022, but still above pre-pandemic levels.
The Labor Department expects to report that employers added 160,000 jobs in December, contributing to a modest unemployment rate of 4.2%. The Federal Reserve has been raising interest rates to combat inflation, which reached four-decade highs two and a half years ago. Although the Fed cut interest rates last month, policymakers now project only two rate cuts for 2025, down from previous projections.
Despite stagnant progress on inflation, the data suggests that the US job market remains resilient, with weekly jobless claims below pre-pandemic levels and a historically low unemployment rate.
Source: https://apnews.com/article/employment-layoffs-labor-united-states-economy-ae4832c3e937f5789a3de71cce98202f