U.S. jobless claims dip to 224,000 as labor market shows resilience

WASHINGTON — U.S. initial claims for unemployment benefits fell by 13,000 last week to 224,000 for the week ended Dec. 13, the Labor Department said Thursday. The decline keeps claims in a historically healthy range and suggests layoffs remain limited even as economists assess the labor market’s momentum. The report comes as investors weigh whether hiring has cooled further in a still-tight economy. Analysts had expected roughly 200,000 new claims.

The four-week moving average rose by 500 to 217,500, helping to smooth week-to-week fluctuations. A separate, more volatile figure shows the total number of people who filed for unemployment benefits during the week ending Dec. 6 was 1.9 million, up 67,000 from the previous week. The Labor Department also noted revisions that pulled 33,000 jobs off August and September payrolls, underscoring the ongoing volatility in monthly hiring tallies. The department noted that the overall trend has been influenced by revisions as well as weekly volatility, complicating the interpretation of the health of the labor market.

Earlier this week, government data highlighted a split in the labor market: the U.S. gained 64,000 jobs in November but shed 105,000 in October, largely reflecting departures among federal workers at the end of the fiscal year and other adjustments. The nationwide unemployment rate stood at 4.6% in November, the highest since 2021, and November’s job gains were stronger than economists’ forecasts, signaling resilience in some sectors even as hiring momentum shows signs of slowing. Market observers have noted that recent payroll revisions can tilt interpretations of the labor market’s health.

Companies have announced substantial layoffs in recent weeks, including UPS, General Motors, Amazon and Verizon. Analysts caution that even when announced, such cuts can take time to be reflected in government data, meaning the headline figures may lag underlying trends in the job market.

The Federal Reserve last week lowered its benchmark lending rate by a quarter point, continuing a path of gradual easing. Fed Chair Jerome Powell indicated the move aimed to counter what policymakers viewed as risks that the labor market might be weaker than it appears. He also warned that recent job figures could be revised lower by as much as 60,000, which would imply an average monthly decline in jobs of around 25,000 since the spring. The combination of softer hiring data and monetary policy easing leaves policymakers watching additional payroll data closely to gauge whether the economy can sustain growth without stoking inflation.

Taken together, the latest data suggest the labor market remains resilient enough to support consumer spending while showing early signs of cooling that could influence the trajectory of monetary policy. Investors and employers alike will likely scrutinize the next round of jobs data for clearer signals on hiring momentum and the pace at which wage pressures may evolve, as the economy navigates a slower but continued expansion in a higher-rate environment.