U.S. Jobless Claims Dip More Than Expected To 214,000

(RTTNews) - The Labor Department released a report on Wednesday showing first-time claims for U.S. unemployment benefits fell by more than expected in the week ended December 20th.

The report said initial jobless claims dipped to 214,000, a decrease of 10,000 from the previous week's unrevised level of 224,000. Economists had expected jobless claims to edge down to 223,000.

"Despite ongoing seasonal volatility, initial jobless claims remain in a range consistent with relatively steady labor market conditions and don't change out outlook for the labor market or Fed policy," said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.

The Labor Department said the less volatile four-week moving average also slipped to 216,750, a decrease of 750 from the previous week's unrevised average of 217,500.

Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, rose by 38,000 to 1.923 million in the week ended December 13th.

The four-week moving average of continuing claims still edged fell to 1,893,750, a decrease of 5,250 from the previous week's revised average of 1,899,000.

"Continued claims, which aren't immune to seasonal volatility, remain at a level consistent with a slow pace of hiring but aren't sending a signal that hiring conditions have gotten worse," said Vanden Houten.

Last Tuesday, the Labor Department released a separate report showing employment in the U.S. increased by more than expected in the month of November, although the job growth followed a notable decrease in employment in October.

The report said non-farm payroll employment climbed by 64,000 jobs in November after tumbling by 105,000 jobs in October. Economists had expected employment to rise by 50,000 jobs.

At the same time, the report said the unemployment rate rose to 4.6 percent in November from 4.4 percent in September. The unemployment rate was expected to tick up to 4.5 percent.

With the bigger than expected increase, the unemployment rate reached its highest level since hitting 4.7 percent in September 2021.