The number of Americans applying for unemployment benefits fell markedly last week following a big increase the week before. Jobless claim applications declined by 22,000 to 220,000 for the week of Dec. 14, the Labor Department reported Thursday. That’s fewer than the 229,000 analysts were forecasting. Continuing claims, the total number of Americans collecting jobless benefits, fell by 5,000 to 1.87 million for the week of Dec. 7. That was also fewer than analysts had projected.
The four-week average of weekly claims, which quiets some of the week-to-week volatility, rose by 1,250 to 225,500.While the job market has shown some softening recently, it remains broadly healthy and has held up better than many experts predicted considering that interest rates have been elevated for years. The Federal Reserve instituted a flurry of rate increases in 2022 and into 2023 to try to suppress the four-decade high inflation that took hold when the U.S. economy rebounded from the brief but sharp pandemic recession— in response to broadly receding inflation, though it has proven difficult to get down to the U.S. central bank’s target of 2%.from a 3 1/2 year low of 7.4 million in September, a sign that businesses are still seeking workers even though hiring has cooled., following a paltry 36,000 in October, when the effects of strikes and hurricanes had sharply diminished employers’ payrolls. The government also revised up its estimate of job growth in September and October by a combined 56,000