Initial claims for US unemployment benefits fell by 22,000 last week to 220,000, the Labor Department reported Thursday, easing concerns sparked by a recent holiday-season surge.
The figure, for the week ending December 14, beat economists’ median forecast of 230,000, according to a Bloomberg survey.
The decrease follows a spike in applications earlier in December, a common occurrence during the holiday period due to seasonal fluctuations in hiring and reporting. Continuing claims, which measure the number of people receiving ongoing unemployment benefits, also declined to 1.87 million in the prior week.
Despite the recent volatility, unemployment claims remain relatively low, hovering near pre-pandemic averages, indicating overall resilience in the labor market. Federal Reserve Chair Jerome Powell echoed this assessment on Wednesday, describing the labor market as “in solid shape” while acknowledging ongoing cooling.
The four-week moving average of initial claims, which smooths out weekly fluctuations, rose slightly to 225,500. However, before seasonal adjustments, initial claims actually decreased last week, with New York, Texas, and Georgia reporting the largest drops.
The latest data suggests a continued, though gradual, cooling of the labor market, a factor the Federal Reserve is monitoring closely as it navigates monetary policy.
