U.S. jobless claims fall to 224,000 as layoffs stay low
Initial weekly claims dip; four-week average edges higher amid slowing hiring and ongoing rate cuts
WASHINGTON — U.S. applications for unemployment benefits fell by 13,000 last week to 224,000, the Labor Department reported Thursday, keeping claims in a historically healthy range seen in recent years. The figure was above economists' median forecast of 200,000.
The four-week moving average rose by 500 to 217,500, smoothing week-to-week volatility. The Labor Department also said that the total number of Americans filing for jobless benefits for the week ending December 6 was 1.9 million, up 67,000 from the previous week.
In November, the government reported payroll gains of 64,000, while October payrolls fell by 105,000 as federal workers departed after end of fiscal year 2025. The unemployment rate rose to 4.6 percent last month, the highest since 2021. Revisions to August and September payrolls trimmed 33,000 jobs from those months.
The Federal Reserve trimmed its policy rate by 25 basis points, its third straight cut, citing signs that the job market may be weaker than it appears. Powell said that recent job figures could be revised lower by as much as 60,000, which would imply an average monthly loss around 25,000 jobs since spring.
Some large employers have announced cuts recently, including UPS, General Motors, Amazon and Verizon, though the effects may take time to show up in government data.
Analysts said the report will inform views on the pace of monetary policy adjustments and the economy's sensitivity to borrowing costs.