US unemployment applications arrive back down after large rise

The number of Americans applying for unemployment benefits fell markedly last week following a large boost the week before.

Jobless claim applications declined by 22,000 to 220,000 for the week of Dec. 14, the Labor Department reported Thursday. That’s fewer than the 229,000 analysts were forecasting.

Continuing claims, the total number of Americans collecting jobless benefits, fell by 5,000 to 1.87 million for the week of Dec. 7. That was also fewer than analysts had projected.

The four-week average of weekly claims, which quiets some of the week-to-week volatility, rose by 1,250 to 225,500.

Weekly applications for jobless benefits are considered representative of U.S. layoffs.

While the job trade has shown some softening recently, it remains broadly well and has held up better than many experts predicted considering that profit rates have been elevated for years. The Federal safety net instituted a flurry of rate increases in 2022 and into 2023 to try to suppress the four-decade high worth rise that took hold when the U.S. economy rebounded from the brief but sharp pandemic decline.

The Fed cut its standard rate again on Wednesday — its third cut in a row — in response to broadly receding worth rise, though it has proven challenging to get down to the U.S. central financial institution’s target of 2%.

The bigger shock, which led to a huge selloff on Wall Street Wednesday, was that the Fed projected just two rate cuts in 2025, down from the previous four.

Earlier this month, the government reported that U.S. job openings rebounded to 7.7 million in October from a 3 1/2 year low of 7.4 million in September, a sign that businesses are still seeking workers even though hiring has cooled.

In November, U.S. employers added a powerful 227,000 jobs, following a paltry 36,000 in October, when the effects of strikes and hurricanes had sharply diminished employers’ payrolls. The government also revised up its approximate of job growth in September and October by a combined 56,000.