Applications for unemployment benefits in the United States have fallen to their lowest level in over three years, suggesting employers are largely retaining staff despite recent layoff announcements across various sectors. Initial claims decreased by 27,000 to 191,000 in the week ending November 29. This period included Thanksgiving, which can often introduce volatility into the weekly claims data. The latest figure was below all estimates in a Bloomberg survey of economists.
The four-week moving average of new applications, designed to smooth out week-to-week fluctuations, also saw a decrease. The average fell to 214,750 last week, marking the lowest level since January, according to data released by the Labor Department on Thursday. This trend indicates a relatively stable labour market despite individual company layoff events.
Economists remain cautiously optimistic, noting the potential for volatility around holiday periods. Nancy Vanden Houten, lead economist at Oxford Economics, commented that while initial claims can be subject to significant swings at this time of year, the overall trend remains consistent with a low pace of job losses. The steady flow of new applications suggests underlying strength in the US labour market, with employers hesitant to reduce their workforce despite broader economic uncertainties.
