Continuing jobless claims also edged lower for the second straight week to two-month low.
The number of Americans filing for first-time unemployment benefits declined to the lowest level in more than three years, new Department of Labor data released on Dec. 4 show.
For the week ending Nov. 29, initial jobless claims fell by 27,000 to 191,000, marking the fourth consecutive weekly drop.
Economists had penciled in a reading of 220,000.
Initial claims for state unemployment benefits, which included last week’s Thanksgiving holiday, are at their lowest level since September 2022. It is also the first time this year that claims were below 200,000.
Claims are typically volatile around this time of the year. However, the four-week average, which removes week-to-week volatility, declined to 214,750—the lowest in 10 months.
Federal worker jobless claims decreased for the second straight week, tumbling by 599 from the previous week, to 1,125. The latest figures reflect the end of the record-breaking U.S. government shutdown.
Economists have been closely watching this measure this year to determine whether the Trump administration’s policies and the Department of Government Efficiency’s measures have influenced government payrolls.
In addition, continuing jobless claims—a gauge of unemployed individuals currently receiving unemployment benefits—dipped for the second straight week to 1.939 million, the lowest since early October.
Still, recurring claims have remained above 1.9 million since mid-May, highlighting the challenge unemployed Americans face in securing new jobs.
The positive development in the U.S. labor market comes as payroll processor ADP reported 32,000 private-sector job losses last month.
Additionally, global outplacement firm Challenger, Gray and Christmas said planned job cuts totaled more than 71,000 in November, down 53 percent from October. Year-to-date, planned layoffs have surpassed 1.1 million for the first time since 2020.
Labor Market Anemia
Federal Reserve officials and market watchers have described employment conditions as “low fire, low hire”—a stagnating climate fueled by various factors.
The labor market stagnation has been supply-driven, with fewer workers entering the labor force and President Donald Trump’s immigration restrictions. At the same time, demand for labor has softened amid economic uncertainty, causing consternation among businesses.
Companies shifting to artificial intelligence have also begun to affect labor market dynamics, particularly for entry-level jobs.
By Andrew Moran
