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U.S. Jobless Claims Fall to 214,000 as Ongoing Benefits Rise

Elevated continuing claims point to slower rehiring during the window used to survey December's unemployment rate.

Overview

  • New applications for benefits fell by 10,000 to 214,000 in the week ended Dec. 20, undershooting the 224,000 Reuters consensus in an early release for the holiday.
  • Continuing claims rose by 38,000 to 1.923 million in the week ended Dec. 13, signaling slower rehiring despite low initial filings.
  • Economists describe a "no hire, no fire" market, with holiday timing and seasonal adjustments adding extra week-to-week volatility.
  • Consumers' views of job prospects weakened to early-2021 levels in Conference Board data, aligning with elevated ongoing claims.
  • The Federal Reserve cut rates by 25 basis points to 3.50%–3.75% this month and indicated limited scope for further near-term easing.