Applications for US unemployment benefits were little changed last week, remaining near a historically low level, underscoring businesses’ reluctance to lay off workers in a supply-constrained labor market.
(Bloomberg) — Applications for US unemployment benefits were little changed last week, remaining near a historically low level, underscoring businesses’ reluctance to lay off workers in a supply-constrained labor market.
Initial unemployment claims increased by 2,000 to 216,000 in the week ended Dec. 17, Labor Department data showed Thursday. The median forecast was for 222,000 applications.
Continuing claims, or the number of people who have already filed an initial application and are now claiming unemployment benefits, edged down to 1.67 million in the week ended Dec. 10. It marked the first decline since the period ended Oct. 1.
The measure has been slowly climbing, a potential indication that it’s been more difficult for out-of-work individuals to find new jobs.
The four-week moving average in initial claims, with smooths out some of the week-to-week volatility, slipped to a one-month low of 221,750. The data can be particularly difficult to seasonally adjust around the holidays.
The job market remains extremely tight, and while there have been some signs of cooling, the ongoing imbalance between supply and demand for labor continues to put upward pressure on wages. It’s also made many employers more reluctant to reduce headcount, given the challenges in attracting and retaining employees.
Separate data from the Conference Board Wednesday showed more consumers viewed jobs as “plentiful” in December than in the prior month, while fewer people perceived jobs as “hard to get.”
On an unadjusted basis, initial claims fell with California, Indiana and Ohio posting the biggest declines.
A separate report showed that US gross domestic product expanded at a 3.2% annual pace in the third quarter, higher than previously estimated and driven by an upward revision to consumer spending.
–With assistance from Jordan Yadoo.
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