US Jobless Claims Drop to 211,000, Lowest Since March 2024/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. unemployment claims fell to 211,000 last week, marking the lowest level since March 2024. The drop signals continued job market strength, even as hiring has slowed from the post-pandemic peak. Economists caution that holiday adjustments may influence the numbers.
US Job Market Update: Key Highlights
- Unemployment Claims: Weekly claims fell by 9,000 to 211,000, with the four-week average declining to 223,250.
- Continuing Benefits: The number of Americans receiving unemployment aid dropped by 52,000 to 1.84 million.
- December Hiring Expectations: Employers are forecast to have added 160,000 jobs last month, a decline from earlier years but still steady.
- Interest Rates and Inflation: The Federal Reserve continues to adjust interest rates as inflation remains above the 2% target.
US Jobless Claims Drop to 211,000, Lowest Since March 2024
Deep Look
Unemployment Claims and Job Security
The Labor Department’s latest data shows weekly unemployment claims at their lowest since March 2024, dropping by 9,000 to 211,000. The four-week moving average also declined to 223,250, reflecting a stable labor market. Continuing claims, which track ongoing unemployment benefits, fell to 1.84 million, the lowest since September.
Economists Thomas Simons and Sam Saliba of Jefferies noted the encouraging trend but urged caution due to potential seasonal adjustments around the holidays.
Job Market Trends
The U.S. job market has cooled from its post-pandemic hiring surge but remains resilient. Through November, employers added an average of 180,000 jobs per month in 2024, down from 251,000 in 2023 and a record 604,000 in 2021. Despite the slowdown, job creation remains solid.
The unemployment rate, currently at 4.2%, is up from the half-century low of 3.4% reached in 2023.
Economic Context: Inflation and Interest Rates
The Federal Reserve’s efforts to combat inflation through interest rate hikes have yielded mixed results. Inflation, which peaked at 9.1% in mid-2022, fell to 2.7% in November 2024. However, progress has recently stalled, keeping consumer price increases above the Fed’s 2% target.
In December, the Fed cut its benchmark interest rate for the third time in 2024 but signaled a cautious approach to future cuts, projecting just two in 2025, down from four previously anticipated.
What’s Next?
The Labor Department will release December hiring data on January 10, with analysts expecting 160,000 new jobs added last month. These figures will provide further insight into the health of the job market and its trajectory in 2025.
Takeaways
- Resilient Labor Market: Unemployment claims remain below pre-pandemic levels, reflecting strong job security.
- Slower Hiring Pace: Job creation has cooled but continues to signal economic stability.
- Economic Balancing Act: The Federal Reserve’s rate adjustments reflect ongoing efforts to manage inflation while supporting growth.
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