The number of Americans filing new applications for unemployment benefits fell last week, reversing the prior week’s surge and suggesting labor market conditions remained stable in December.
Initial claims for state unemployment benefits dropped 13,000 to a seasonally adjusted 224,000 for the week ended December 13, the Labor Department said on Thursday. Economists polled by Reuters had forecast 225,000 claims for the latest week.
Claims have see-sawed in recent weeks, reflecting challenges adjusting the data around the Thanksgiving holiday. The labor market tone has not changed much, with employers reluctant to hire more workers, but not embarking on mass layoffs either.
Economists say President Donald Trump’s sweeping tariffs have caused an unexpected shock for businesses, who have responded by pulling back on increasing head count.