According to data released by the U.S. Department of Labor on Wednesday, as of the week ending December 27, the number of initial unemployment claims decreased by 16,000 to 199,000.
This figure is lower than Bloomberg’s prediction and is one of the few weeks since early 2024 where fewer than 200,000 individuals applied for unemployment benefits.
Recent data has shown significant fluctuations, a common phenomenon during the holiday season at the year-end. The latest reporting period includes Christmas as well as the newly declared federal holidays on December 24 and 26.
Earlier this month, initial claims for unemployment benefits hit a three-year low around Thanksgiving before rebounding. The four-week moving average of initial unemployment claims, which is used to smooth out fluctuations, slightly increased to 218,750.
The number of individuals continuing to receive unemployment benefits, a measure of the total number of claimants, fell to 1.87 million last week, marking one of the lowest levels in recent months.
However, overall hiring activity remains subdued, undermining Americans’ confidence in job prospects. A report released last week by the World Economic Forum indicated that an increasing number of Americans believe jobs are hard to come by, while the proportion of those perceiving ample job opportunities is declining.