Overview
- New applications for unemployment benefits fell by 10,000 to 214,000 for the week ended Dec. 20, coming in below forecasts.
- The four-week moving average slipped to 216,750, reinforcing that headline layoffs remain relatively low.
- Continuing claims rose by 38,000 to about 1.923 million in the week ended Dec. 13, which aligns with the survey window for December’s unemployment rate.
- Late-December claims data are prone to volatility from seasonal adjustments, with earlier measurement disruptions from a 43-day government shutdown still complicating interpretation.
- The Federal Reserve cut its policy rate by 25 basis points this month to 3.50%–3.75% and has indicated a wait-and-see approach as it evaluates labor and inflation trends.