US Applications for Unemployment Benefits Fall Slightly

What's New

The number of Americans applying for unemployment benefits fell slightly last week, but continuing claims rose to a three-year high.

Why It Matters

While the number of jobless claim applications held steady, the uptick in the total number of Americans collecting unemployment benefits suggests that some who receive jobless benefits are finding it more difficult to get new jobs. This could signal that demand for workers is decreasing, even though the economy remains strong overall.

What To Know

The labor market remains healthy overall but has moved away from the red-hot market seen in 2022 and 2023.

Unemployment Benefit Applications Dip

Jobless claim applications dipped by 1,000 to 219,000 for the week ending December 21, the U.S. Department of Labor reported Thursday.

This number is fewer than the 223,000 analysts were expecting.

The number of Americans applying for unemployment benefits fell slightly last week but continuing claims rose to a three-year high. Lorozco3D/Getty Images

Continuing Jobless Claims Reach 3-Year High

The total number of Americans collecting unemployment benefits rose by 46,000 to 1.91 million for the week ending December 14, making it the highest level of continuing claims in three years.

This number is more than analysts predicted and the most since the week ending November 13, 2021. At that time, the labor market was still recovering from the massive job cuts during the COVID-19 pandemic in the spring of 2020.

On the bright side, the Labor Department reported earlier this month that the U.S. economy added 227,000 jobs in November, a significant bounce-back from October's sluggish gain of just 36,000 jobs.

What People Are Saying

Federal Reserve Chairman Jerome Powell told reporters last week: "The economy is strong overall and has made significant progress toward our goals over the past two years."

"In the labor market conditions remain solid. Payroll job gains have slowed from earlier in the year, averaging 173,000 per month over the past three months, the unemployment rate is higher than it was a year ago, but at 4.2 percent in November, it has remained low," Powell said when announcing a recent interest rate cut.

What Happens Next

The jobs report for December will come out on January 10, 2025. This report from the U.S. Bureau of Labor Statistics (BLS) looks at the number of people on payrolls in the U.S., the average number of hours they worked weekly and their average hourly earnings. The jobs report also estimates the unemployment rate.

This article includes reporting from The Associated Press.