US Jobless Claims Drop Ahead of Christmas, Defying Economic Forecasts
According to the Economic Desk of Webangah News Agency, data from the US Labor Department shows that initial jobless claims dropped by 16,000 to 199,000 in the week leading up to December 27. This figure represents one of the few instances in 2024 where claims have dipped below 200,000, significantly underperforming all projections in Bloomberg’s economist survey.
The recent weeks have seen considerable volatility in these figures, which is typical for this seasonal period. The latest reporting window included both Christmas holidays and Federal Reserve holidays on December 24 and 26.
Earlier this month, unemployment claims had risen after hitting a three-year low during the Thanksgiving holiday week. The four-week moving average of initial claims, which helps smooth out weekly fluctuations, increased to 218,750.
Meanwhile, continuing claims – measuring those already receiving unemployment benefits – declined to 1.87 million in the prior week, among the lowest levels recorded in recent months.
The US economy has faced sluggish hiring trends through much of 2024, dampening American workers’ confidence in job prospects. While the unemployment rate has reached its highest point in four years, actual layoffs remain relatively contained.
Bloomberg reported that before adjustments for seasonal factors, initial jobless claims had actually increased last week. New Jersey, Pennsylvania and Michigan saw claim increases, while Texas and California reported decreases.
Bloomberg economists suggest the weak hiring trend may prompt the Federal Reserve to adopt more supportive, cautious policies in 2026, particularly as some policymakers warn about labor market fragility and the risk of accelerated job losses in a weak hiring environment.
