Jobless claims fall again — and they’re even lower than last year
Much has changed in the U.S. economy since President Donald Trump took over from President Joe Biden almost one year ago, but one thing hasn’t: the low level of layoffs. Companies just aren’t getting rid of many workers.
Initial jobless claims — the number of people who apply for unemployment benefits — fell by 10,000 to a seasonally adjusted 214,000 in the seven days that ended Dec. 20,
the government said Wednesday. The report came out a day early due to the Christmas holiday.
How low is that? New claims tend to run around 250,000 to 300,000 a week in a normal economy.
Not only that, but jobless claims show no sign of rising despite lots of turbulence in the U.S. economy. New unemployment filings are actually lower at the end of this year than they were at the end of 2024.
While it’s great news that layoffs are low, the flip side is that most companies are not adding jobs. Economists refer to this trend as a “low-hire, low-fire” labor market.
Still, as long as most people have jobs and feel secure in them, they are likely to buy enough goods and services from businesses to keep the economy expanding at a healthy pace.
Key details: The number of people already collecting unemployment benefits, known as continuing claims, rose by 38,000 to 1.92 million.
Continuing claims have risen in the past few years to a postpandemic high, but they appear to have stabilized in the past few months.