New filings for jobless benefits fell more than expected across the U.S. last week, reversing the prior week’s jump and suggesting that a gradual labor market slowdown remains in place, Reuters reports.
Initial claims for state unemployment benefits dropped 22,000 to a seasonally adjusted 220,000 for the week ending Dec. 14, the Labor Department says. Economists polled by Reuters had forecast 230,000 claims for the latest week. They had jumped 17,000 in the prior week. Claims have entered a period of volatility, which could see large swings in the data.
Other data released Thursday shows the economy grew faster than previously estimated in the third quarter, driven by robust consumer spending. The upbeat report came a day after the Federal Reserve delivered a third consecutive interest rate cut, but projected only two rate reductions in 2025, citing the economy’s continued resilience and still-elevated inflation.
