Jobless claim applications fell by 13,000 last week, layoffs remain low
U.S. Unemployment Applications Drop by 13,000
By MATT OTT, AP Business Writer
WASHINGTON (AP) — The number of Americans applying for jobless claims fell by 13,000 last week, maintaining a historically healthy range despite concerns about the labor market’s health.
For the week ending Dec. 13, jobless claims declined to 224,000 from the previous week’s 237,000, as reported by the Labor Department on Thursday. This figure surpassed analysts’ expectations of 200,000 new applications.
Unemployment aid applications serve as a gauge for layoffs and offer a real-time insight into the job market’s condition.
Recent reports showed that the U.S. gained 64,000 jobs in November but lost 105,000 in October due to federal worker departures following cutbacks by the Trump administration. The unemployment rate rose to 4.6% last month, the highest since 2021.
Despite the encouraging job gains in November, hiring momentum has decreased due to uncertainties surrounding President Donald Trump’s tariffs and the lasting impact of high interest rates implemented by the Fed in 2022 and 2023 to combat pandemic-induced inflation. Job creation has dwindled to an average of 35,000 per month since March, compared to 71,000 in the previous year.
The Federal Reserve has recently reduced its benchmark lending rate by a quarter-point for the third consecutive time. Fed Chair Jerome Powell expressed concerns about the job market’s weakness, suggesting that recent job figures might be revised lower by 60,000, indicating an average monthly job loss of around 25,000 since spring.
Several companies, including UPS, General Motors, Amazon, and Verizon, have announced job cuts, which may take months to reflect in the government’s data.
The Labor Department’s report also revealed that the four-week average of jobless claims rose by 500 to 217,500, with the total number of Americans filing for jobless benefits reaching 1.9 million for the week ending Dec. 6.
