Jobless claim applications decreased by 1,000 to 219,000 for the week of Dec. 21, which was below analysts’ expectations of 223,000.
Conversely, continuing claims, representing the total number of Americans collecting jobless benefits, increased by 46,000 to 1.91 million for the week of Dec. 14, reaching the highest level in three years, indicating challenges for beneficiaries in securing new jobs.
The big picture: An increase in continuing claims suggests that individuals receiving benefits are facing difficulties in finding new employment opportunities, hinting at a potential decrease in demand for workers despite the overall strength of the economy.
Driving the news: The Federal Reserve made a surprising move by cutting its benchmark interest rate for the third consecutive time to address receding inflation, which remains above the target rate of 2%.
- Market expectations were also affected by the Fed’s projection of just two rate cuts in 2025, down from the previous forecast of four, signaling a potential shift in monetary policy.
- Data from the government revealed a rebound in U.S. job openings to 7.7 million in October, indicating ongoing demand for workers despite a decrease in hiring activity. In November, U.S. employers added 227,000 jobs, showing improvement from the previous month, which was affected by strikes and hurricanes. Additionally, the government revised its estimates of job growth in September and October, increasing the combined figures by 56,000.
What we’re watching: The upcoming release of the December jobs report on Jan. 10 will provide more insights into the current state of the U.S. labor market and the ongoing recovery from the economic impacts of the pandemic.
