The number of Americans filing new applications for unemployment benefits fell last week, reversing the prior week’s surge. The Labour Department reported 224,000 initial claims for the week ending December 13, a decline of 13,000 from the previous week. Economists had expected 225,000 claims.
Claims data have fluctuated in recent weeks due to seasonal adjustments around the Thanksgiving holiday. Analysts say the labour market tone remains largely unchanged: employers are cautious about hiring more workers but are not engaging in mass layoffs.
Economists link cautious hiring partly to President Donald Trump’s sweeping tariffs. A survey of 548 chief financial officers spanning firms with one to more than 1,000 employees conducted by the Federal Reserve banks of Richmond and Atlanta alongside Duke University’s Fuqua School of Business confirmed that tariffs remain a top concern for businesses.
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The unemployment claims data coincided with the government’s survey period for the nonfarm payrolls component of December’s employment report. November payrolls rose by 64,000, according to the Bureau of Labour Statistics. The December report is scheduled for release in January.
Although the unemployment rate was 4.6% in November, the highest since September 2021 it was distorted by technical factors related to the 43-day government shutdown.
The shutdown prevented the collection of household data necessary to calculate October’s jobless rate.
The Federal Reserve last week cut its benchmark overnight interest rate by 25 basis points, bringing it to the 3.50%–3.75% range.
Policymakers signalled a pause in further rate cuts while monitoring job market trends and inflation signals.
Longer periods of unemployment persist for some workers. The number of people receiving ongoing unemployment benefits, considered a proxy for hiring activity, rose by 67,000 to a seasonally adjusted 1.897 million during the week ending December 6. This indicates that while layoffs are limited, rehiring remains slow.
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U.S. labour market conditions remain broadly stable, but seasonal volatility and economic uncertainty, particularly from tariffs, continue to shape employer behaviour. Policymakers and analysts will closely watch upcoming December employment data for clearer signals on hiring trends and inflation.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
