#USJoblessClaimsDrop
Dear friends,
The U.S. labor market continues to exhibit resilience, as evidenced by a recent decline in jobless claims. For the week ending January 4, initial unemployment benefit applications fell to 201,000, marking the lowest level since February of the previous year.
AP NEWS
This decrease of 10,000 from the prior week's 211,000 applications suggests that layoffs remain minimal. The four-week moving average, which helps smooth out weekly volatility, also declined by 10,250 to 213,000. However, the total number of individuals receiving unemployment benefits rose slightly to 1.87 million in late December, indicating that while layoffs are low, some workers are experiencing longer periods of unemployment.
AP NEWS
Despite a slowdown from the rapid job creation seen during the post-pandemic recovery, the labor market remains robust. Employers added an average of 180,000 jobs per month in 2024, down from 251,000 in 2023 and 377,000 in 2022. The unemployment rate stands at 4.2%, up from a half-century low of 3.4% reached in 2023.
AP NEWS
The Federal Reserve's monetary policy has been influenced by these labor market dynamics. In response to high inflation, the Fed raised interest rates 11 times in 2022 and 2023. With inflation moderating—from 9.1% in mid-2022 to 2. ... —the Fed implemented three rate cuts in 2024. However, policymakers have signaled a more cautious approach moving forward, projecting just two rate cuts in 2025.
AP NEWS
Additionally, job openings have increased, rising to 8.1 million ... from 7.8 million ... indicating sustained demand for workers.
AP NEWS
Overall, the decline in jobless claims reflects a strong labor market with low layoffs, even as job creation has decelerated from the highs of the past few years.
Recent Trends in U.S. Jobless Claims
AP News
US applications for jobless claims fall to 201,000, lowest level in nearly a year