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U.S UNEMPLOYMENT CLAIMS DROP SLIGHTLY BELOW EXPECTATIONS!

US unemployment claims have dropped slightly below expectations, with 219,000 initial claims filed for the week ending December 21, marking a decrease of 1,000 from the previous week.

This decline suggests a resilient labor market, despite rising insured unemployment rates.

The insured unemployment rate increased by 0.1 percentage points to 1.3%, with total insured unemployment claims rising by 46,000 to 1,910,000 - the highest level since November 2021.

Unadjusted claims also saw a 9% increase to 274,734, slightly below seasonal expectations.

This mixed data may lead to market volatility, particularly in sectors sensitive to labor conditions.

The decline in initial claims supports the view that layoffs remain contained, potentially boosting equity markets and risk assets.

However, the rising insured unemployment rate introduces caution, suggesting that while layoffs are stable, those losing jobs are taking longer to return to work.