US Jobless Claims Hit Nine-Month Low
Weekly unemployment claims in the US decreased by 9K to 211K last week, reaching the lowest level since March. In addition, the four-week average declined by 3.5k to 223,250.
Facts
- Weekly unemployment claims in the US decreased by 9K to 211K last week, reaching the lowest level since March. In addition, the four-week average declined by 3.5k to 223,250.[1]
- The total number of Americans receiving unemployment benefits dropped by 52K to 1.84M, marking the lowest level since September.[1][2]
- Monthly job creation has shown a gradual cooling trend, with employers adding an average of 180K jobs monthly through November in 2024, down from 251K in 2023, 377K in 2022, and a record 604K in 2021.[1][2]
- The unemployment rate currently stands at 4.2%, an increase from the half-century low of 3.4% reached in 2023.[2][3]
- This comes after the Federal Reserve implemented 11 interest rate hikes during 2022 and 2023 to combat inflation. Inflation dropped from 9.1% in mid-2022 to 2.7% in November 2024. But year-over-year consumer price increases remain above the Federal Reserve's 2% target.[1][2]
- The Federal Reserve has indicated a more cautious approach to future rate cuts, projecting only two cuts in 2025, reduced from its September projection of four cuts.[2][4]
Sources: [1]Associated Press, [2]The Economic Times, [3]Reuters and [4]Bloomberg.
Narratives
- Democratic narrative, as provided by Bloomberg. As the Biden administration winds down, the labor market is in fine shape, as it has shown an impressive level of resiliency. In general, companies are holding onto their workers, and any moderating of the labor market is normal and no cause for concern.
- Republican narrative, as provided by Daily Caller. The current administration wants to cherry pick the data to present a rosy picture, but the fact is economic growth is expected to slow in 2025, and that'll further hamper job creation. Luckily, the Trump administration is on the way to institute better policies.
