Initial Jobless Claims Fall to New Low
The latest data from the U.S. Department of Labor shows that for the week ending December 21, the number of initial jobless claims in the U.S. decreased by 1,000, seasonally adjusted to 219,000. This figure is below the market expectation of 224,000, indicating that although the labor market is cooling, it remains healthy.
Economists pointed out that since Thanksgiving, unemployment data has fluctuated due to the seasonal increase in temporary holiday workers. However, the current number of initial jobless claims is still close to the average level of the past year, suggesting that the level of layoffs is still controlled and has not significantly increased.
Lengthening Unemployment Duration
Although initial jobless claims have declined, it is becoming more difficult for the unemployed to find new jobs. Data shows that for the week ending December 14, the number of continued jobless claims increased by 46,000, reaching 1.91 million, the highest since November 2021. This figure exceeds the market expectation of 1.88 million, indicating that more unemployed individuals are facing challenges in finding new employment.
In addition, the average duration of unemployment in November rose to 23.7 weeks, the highest level since April 2022. In April of this year, this number was less than 20 weeks, but it has shown a steady upward trend since then, indicating increasing pressure on reemployment in the labor market.
Impact on Federal Reserve Policy
The decline in initial jobless claims contrasts sharply with the rise in continued jobless claims, reflecting the complexity of the labor market. Analysts believe that this disparity may lead the Federal Reserve to maintain interest rates in the short term and not further cut rates.
Overall, the labor market is experiencing a gradual cooling, but layoffs remain low, while the increasing difficulty of reemployment for the unemployed may become an important variable affecting the future job market.
