Number seeking unemployment drops right before holidays after big jump a week ago
The number of Americans applying for unemployment benefits fell markedly last week following a big increase the week before
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The number of Americans applying for unemployment benefits fell markedly last week following a big increase the week before.
Jobless claim applications declined by 22,000 to 220,000 for the week of Dec. 14, the Labor Department reported Thursday. That’s fewer than the 229,000 analysts were forecasting.
Continuing claims, the total number of Americans collecting jobless benefits, fell by 5,000 to 1.87 million for the week of Dec. 7. That was also fewer than analysts had projected.
The four-week average of weekly claims, which quiets some of the week-to-week volatility, rose by 1,250 to 225,500.
Weekly applications for jobless benefits are considered representative of U.S. layoffs.
While the job market has shown some softening recently, it remains broadly healthy and has held up better than many experts predicted considering that interest rates have been elevated for years. The Federal Reserve instituted a flurry of rate increases in 2022 and into 2023 to try to suppress the four-decade high inflation that took hold when the U.S. economy rebounded from the brief but sharp pandemic recession.
The Fed cut its benchmark rate again on Wednesday — its third cut in a row — in response to broadly receding inflation, though it has proven difficult to get down to the U.S. central bank’s target of 2%.
The bigger surprise, which led to a huge selloff on Wall Street Wednesday, was that the Fed projected just two rate cuts in 2025, down from the previous 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 employers’ payrolls. The government also revised up its estimate of job growth in September and October by a combined 56,000.