More Americans File Unemployment Claims

In December, the U.S. economy created an unexpected number of jobs and saw the unemployment rate fall.

 But last week, the number of Americans filing initial claims for unemployment benefits rose.

According to statistics released by the Labor Department, applications for jobless benefits rose by 14,000 for the week ending Jan. 11. That’s up from the previous week’s 203,000, which was the lowest since February 2024.

The four-week average of claims, which softens some of the week-to-week volatility, dipped by 750 to 212,750.

The total number of Americans receiving unemployment benefits for the week of January 4 fell to by 18,000 to 1.86 million.

Though some signs of labor market weakness surfaced in 2024, jobs are still plentiful and layoffs historically low, the Associated Press reported.

Last week, the Labor Department reported that job growth in December surged and unemployment fell. Employers added 256,000 jobs last month and the unemployment rate ticked down to 4.1%.

The final jobs report of 2024 underscores that the economy and hiring grew at a solid pace even with interest rates much higher than they were before the pandemic. As a result, the Federal Reserve could be much less likely to cut borrowing costs again in the coming months after issuing three cuts late in 2024.