In a report released by the Labor Department on Thursday, it was noted that first-time claims for U.S. unemployment benefits experienced an unexpected decline in the week ending December 28th. The initial jobless claims dropped to 211,000, down 9,000 from the previous week's revised figure of 220,000.
Economists had anticipated a slight increase in jobless claims to 222,000, compared to the 219,000 originally reported for the prior week. This unanticipated drop marks the lowest level of claims since they reached 209,000 in the week ending April 27, 2024.
Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics, commented, "The current claims data align with a robust labor market, suggesting the Federal Reserve can continue rate cuts at a more measured pace in 2025. The reduced number of initial claims highlights a relatively low rate of layoffs."
Furthermore, the Labor Department reported a decrease in the less volatile four-week moving average of jobless claims, which fell to 223,250—a reduction of 3,500 from the prior week's adjusted average of 226,750.
Continuing claims, which indicate the number of individuals receiving ongoing unemployment assistance, saw a decline of 52,000, reaching 1.844 million in the week ending December 21st. The four-week moving average of continuing claims also decreased to 1,870,750, a drop of 6,750 from the previous week's adjusted average of 1,877,500.
Vanden Houten added, "Although the level of continued claims indicates that unemployed workers still face obstacles in securing new employment, the recent downward trend in continued claims is a positive sign."
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Economists had anticipated a slight increase in jobless claims to 222,000, compared to the 219,000 originally reported for the prior week. This unanticipated drop marks the lowest level of claims since they reached 209,000 in the week ending April 27, 2024.
Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics, commented, "The current claims data align with a robust labor market, suggesting the Federal Reserve can continue rate cuts at a more measured pace in 2025. The reduced number of initial claims highlights a relatively low rate of layoffs."
Furthermore, the Labor Department reported a decrease in the less volatile four-week moving average of jobless claims, which fell to 223,250—a reduction of 3,500 from the prior week's adjusted average of 226,750.
Continuing claims, which indicate the number of individuals receiving ongoing unemployment assistance, saw a decline of 52,000, reaching 1.844 million in the week ending December 21st. The four-week moving average of continuing claims also decreased to 1,870,750, a drop of 6,750 from the previous week's adjusted average of 1,877,500.
Vanden Houten added, "Although the level of continued claims indicates that unemployed workers still face obstacles in securing new employment, the recent downward trend in continued claims is a positive sign."
The material has been provided by InstaForex Company - www.instaforex.com