weekly jobless claims dropped

Washington — The US Labor Department said on Wednesday that first-time claims for unemployment benefits fell by more than expected in the week ended December 20, pointing to continued stability in the labour market.

Initial jobless claims declined to 214,000, down 10,000 from the previous week’s unrevised level of 224,000. Economists had forecast a more modest drop to 223,000.

“Despite ongoing seasonal volatility, initial jobless claims remain in a range consistent with relatively steady labour market conditions and don’t change our outlook for the labour market or Federal Reserve policy,” said Nancy Vanden Houten, lead US economist at Oxford Economics.

The less volatile four-week moving average of initial claims edged down to 216,750, a decrease of 750 from the prior week’s unrevised average of 217,500, the department said.

Continuing claims, which reflect the number of people receiving ongoing unemployment assistance, rose by 38,000 to 1.923 million in the week ended December 13. However, the four-week moving average of continuing claims slipped to 1.894 million, down 5,250 from the previous week’s revised average.

“Continuing claims, while still subject to seasonal volatility, remain consistent with a slow pace of hiring but do not signal a deterioration in labour market conditions,” Vanden Houten said.

In a separate report released last week, the Labor Department said US employment rose by more than expected in November, although the gain followed a sharp decline in October. Non-farm payrolls increased by 64,000 in November after falling by 105,000 in October, compared with forecasts for a rise of 50,000.

The unemployment rate climbed to 4.6% in November from 4.4% in October, slightly above expectations for a rise to 4.5%. The increase pushed the jobless rate to its highest level since September 2021, when it reached 4.7%.

Notes from APS Radio News

At the link below is the verbatim report that was issued by the Labor Department.

Unemployment Weekly Insurance Claims

In the week ending December 20, the advance figure for seasonally adjusted initial claims was 214,000, a decrease of
10,000 from the previous week’s unrevised level of 224,000. The 4-week moving average was 216,750, a decrease of 750
from the previous week’s unrevised average of 217,500.

The advance seasonally adjusted insured unemployment rate was 1.3 percent for the week ending December 13, an
increase of 0.1 percentage point from the previous week’s unrevised rate. The advance number for seasonally adjusted
insured unemployment during the week ending December 13 was 1,923,000, an increase of 38,000 from the previous
week’s revised level. The previous week’s level was revised down by 12,000 from 1,897,000 to 1,885,000. The 4-week
moving average was 1,893,750, a decrease of 5,250 from the previous week’s revised average. The previous week’s
average was revised down by 3,000 from 1,902,000 to 1,899,000.