Overview

• Initial unemployment claims fell to 201,000 last week, the lowest level since February 2024, signaling low layoffs and labor market stability.
• Job openings rose to 8.1 million in November, with 1.13 vacancies per unemployed person, reflecting sustained demand for workers despite hiring slowdowns.
• The Federal Reserve is expected to maintain a cautious approach to rate cuts, citing progress on inflation and a desire to avoid weakening the labor market.
• Hiring declined in December, with private payrolls growing by 122,000 jobs compared to 146,000 in November, and continuing claims for unemployment benefits rising slightly.
• Economic uncertainty persists as businesses await clarity on policies from President-elect Donald Trump's incoming administration, including potential tariffs and tax changes.