According to data released by the US Department of Labor on Wednesday, December 24, the number of initial unemployment claims decreased by 10,000 to 214,000 for the week ending on December 20.
The number of ongoing unemployment claims, which measures the number of individuals receiving benefits, rose to 1.92 million last week, rebounding from a significant drop at the end of the previous month.
In recent weeks, there has been significant fluctuation in the number of unemployment claims, which is common during holiday periods. However, the four-week moving average of initial claims, which is used to smooth out fluctuations, showed a decrease last week.
Overall, Bloomberg stated that the data released on Wednesday aligns with the trend of relatively lower layoffs in the labor market. Despite announcements of layoff plans by major employers such as PepsiCo and HP in recent times, these plans have not translated into a significant increase in actual layoffs.
Bloomberg economist Eliza Winger said, “Looking ahead, we expect the tepid hiring situation to lead the Federal Reserve to maintain loose monetary policies in 2026.”
Specifically, Illinois, New York, and Pennsylvania saw the largest decrease in the number of unemployment claims, while New Jersey, Oregon, and Washington had the highest increase in initial unemployment claims last week.
Following the release of the data, US stock futures edged slightly higher. Nasdaq futures rose by 0.02% during the day, S&P 500 futures narrowed their decline to 0.02%, and Dow futures were down by 0.02%.
A report released on Tuesday indicated that the consumer confidence index in December declined for the fifth consecutive month, partly due to consumer concerns about the job market outlook. The proportion of consumers perceiving job market difficulties reached its highest level since early 2021.