US weekly jobless claims fall, labour market shows signs of strain

Applications for US unemployment benefits fell by 13,000 to 224,000 for the week ending December 13, down from 237,000 a week earlier, the Labor Department said on Thursday. The figure remains within the range seen over the past few years, though it was higher than economists’ forecast of 200,000 claims.

Weekly jobless claims are widely viewed as a near-term indicator of layoffs and labour market conditions.

The report comes amid signs of weakening momentum in the jobs market. Earlier this week, government data showed the US added 64,000 jobs in November, while payrolls fell by 105,000 in October. The October decline was driven by a loss of 162,000 federal jobs, as workers exited following fiscal year-end cutbacks. The unemployment rate rose to 4.6% in November, the highest level since 2021.

The Labor Department also revised payroll data for August and September, reducing job counts by a combined 33,000. Since March, job creation has averaged 35,000 a month, down from 71,000 in the 12 months through March.

The four-week moving average of jobless claims rose by 500 to 217,500, smoothing weekly volatility. Continuing claims for the week ending December 6 increased by 67,000 to 1.9 million.

Last week, the Federal Reserve cut its benchmark interest rate by a quarter percentage point for the third consecutive meeting. Fed Chair Jerome Powell said the decision reflected concerns that labor market conditions may be weaker than current data suggests, noting recent employment figures could be revised lower.

Several large companies, including UPS, General Motors, Amazon and Verizon, have announced job cuts in recent months, though such reductions often take time to appear in official data.