US Weekly Jobless Claims Rise to 224,000, Shows Labor Market Gradual Cooling
1min read Initial jobless claims climbed by 9,000 to 224,000 in the week ending November 30, exceeding economists' median forecast of 215,000. This marks the highest level in a month and reflects a continued, albeit gradual, cooling of the labor market. The four-week moving average, which smooths out weekly fluctuations, also ticked up slightly to 218,250.
Following the report, the US Dollar Index weakened, dropping more than 0.4% to 105.88 at the time of writing.
Adding to the labor market data, US employers announced nearly 58,000 job cuts in November, a 27% increase compared to a year ago, according to Challenger, Gray & Christmas. The cuts were largely concentrated in the technology sector and included the largest round of planned layoffs in the auto industry since April.
Despite the rise in announced layoffs, the broader trend shows only a modest 5.2% increase in planned cuts for the year, according to Challenger's data. Meanwhile, the Bureau of Labor Statistics' broader measures of layoffs remain subdued, even as prominent companies such as General Motors, Tyson Foods, and Cargill announced workforce reductions recently.
Volatility Around Holiday Data
It's worth noting that weekly claims data tend to be more volatile around the holidays. Despite the recent uptick, initial claims had remained relatively stable in previous weeks, suggesting the labor market's resilience amid broader economic uncertainty.
Conclusion
The latest data points to a cooling labor market, though layoffs remain concentrated in specific industries rather than widespread. The modest rise in jobless claims, coupled with an increase in planned cuts, hints at a gradually softening economy. Investors and policymakers will closely watch these trends to assess whether they signal broader economic challenges or seasonal fluctuations.
