New unemployment data showed that more Americans filed for jobless benefits last week than economists expected. This increase followed a drop to a three-year low in the previous reporting period.
Initial claims for state unemployment benefits rose to 236,000 for the week ending December 6. This was up from the revised prior week’s figure of 192,000. Economists had forecast a smaller increase to 220,000.
For the week ending November 29, the initial reading came in at a seasonally adjusted 191,000. That was the lowest level since 2022. Some analysts suggested that holiday-related adjustments around Thanksgiving may have contributed to the unusually low number. Others said the reading still reflected a labor market that remains stable.
The four-week moving average, which helps smooth out weekly fluctuations, edged up to 216,750 from 214,750.
Continuing claims — which track the number of people receiving unemployment benefits after their first week of aid — dipped slightly to 1.838 million from 1.937 million. This metric is often viewed as a proxy for hiring strength.
The Federal Reserve cut interest rates by a quarter point on Wednesday. Officials said the decision was intended to support the labor market at a time when inflation is easing but still above the Fed’s target.
However, Chair Jerome Powell gave few hints about whether more rate cuts may follow. The next Fed decision is scheduled for late January. By then, officials will have new employment and inflation data to review, much of which had been delayed by the record-long federal government shutdown.
