Last week, the number of Americans filing for unemployment benefits rose by 14,000, reaching a total of 203,000 applications.
Despite the increase in unemployment applications, the overall layoffs rate remained historically low, reflecting a job market that was still considered healthy.
The big picture: The number of people receiving unemployment benefits dropped by 18,000 to 1.86 million for the week ending January 4.
- Weekly applications for jobless benefits serve as a key indicator for layoffs. While some signs of labor market weakness were observed in 2024, the job market continued to offer ample employment opportunities, with layoffs staying at historically low levels.
Zoom in: December saw a significant increase in job growth, with employers adding 256,000 jobs and the unemployment rate declining to 4.1%.
- The final jobs report of 2024 highlighted the economy’s ability to sustain growth amidst higher interest rates. This strong performance indicated the reduced likelihood of the Federal Reserve implementing further interest rate cuts in the near future, following previous reductions issued in 2024.
- The solid job figures pointed towards the economy transitioning into a phase of steady growth post-COVID, characterized by higher interest rates, low unemployment rates, and slightly elevated inflation.
Flashback: U.S. job openings unexpectedly rose in November, reaching 8.1 million, indicating a continued demand for labor despite the loosening of the labor market.