Unemployment Claims Hit Lowest Since March

The number of Americans filing for unemployment benefits has plummeted to its lowest level since March, with claims falling by 9,000 to 211,000 last week, according to the Labor Department. This decline indicates robust job security across the workforce. The four-week moving average, which minimizes weekly fluctuations, also decreased to 223,250. The total people receiving unemployment assistance fell significantly by 52,000 to 1.84 million.

The US labor market has notably slowed from its peak during the post-pandemic hiring surge from 2021 to 2023. Despite a decrease in monthly average employment gains to 180,000 in 2024 from 251,000 in 2023, job growth remains solid are high interest rates persist. December's numbers, expected on January 10, are forecasted to show an additional 160,000 positions. The unemployment rate stands at a modest 4.2%, up from the historic low of 3.4% recorded in 2023.

In response to prior soaring inflation, the Federal Reserve enacted 11 interest rate hikes over 2022 and 2023. Although inflation dropped from 9.1% in 2022 to 2.7% in November, progress has recently stagnated. The Fed, after reducing its benchmark interest rate three times in 2024, now foresees only two cuts in 2025, suggesting a cautious approach to future rate changes. (This story was generated by Newser's AI chatbot. Source: the AP)