US initial jobless claims slump more than expected

In the first week of December, initial jobless claims in the US dropped by 22,000 from the prior week to 220,000, significantly below market expectations of 230,000.

US initial jobless claims slump more than expected

This decline alleviated concerns about weaker labor conditions that arose after last week’s unexpected increase. The result aligns with the Federal Reserve’s recent projections, suggesting limited interest rate cuts will be necessary next year and underscoring the FOMC’s stance that inflation remains a greater economic threat than a slowing labor market.

Continuing jobless claims decreased

Concurrently, continuing jobless claims decreased by 5,000 to 1,874,000. However, the four-week moving average, which smooths out weekly fluctuations, rose slightly to 225,500. On a non-seasonally adjusted basis, initial claims fell by 57,932, with notable decreases in New York (-6,496), Georgia (-4,915), and other areas (-4,826).