Number of Americans applying for unemployment benefits drops to lowest point since March
(MENAFN) The number of Americans applying for unemployment benefits fell last week to its lowest point since March, signaling that many workers are experiencing unusual job security. According to the labor Department, jobless claims dropped by 9,000 to 211,000. The four-week average of claims, which smooths out weekly fluctuations, also decreased by 3,500, bringing it to 223,250. Additionally, the overall number of people receiving unemployment benefits fell by 52,000, reaching 1.84 million.
While the U.S. job market has cooled from the rapid hiring rates seen in 2021-2023—when the Economy was recovering from COVID-19 lockdowns—employment figures are still relatively strong. Through November 2024, employers added an average of 180,000 jobs per month, a decline from 251,000 in 2023, 377,000 in 2022, and a record 604,000 in 2021. Despite the slowdown, the job creation numbers remain solid, reflecting the resilience of the labor market amid high interest rates.
The Labor Department is set to release December hiring figures on January 10, with expectations that employers added 160,000 jobs during the month. The weekly jobless claims numbers serve as a proxy for layoffs, and these numbers have remained below pre-pandemic levels, indicating stability in the labor market. The current unemployment rate stands at 4.2 percent, a modest rise from the record-low 3.4 percent seen in 2023.
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