Weekly claims for unemployment benefits drop to three-year low

"The number of Americans applying for jobless benefits for the week ending Nov. 29 fell to 191,000 from the previous week's 218,000, the Labor Department reported Thursday. That's the lowest level since September 24, 2022, when claims came in at 189,000. Analysts surveyed by the data provider FactSet had forecast initial claims of 221,000. Kathy Bostjancic, chief economist at Nationwide, said that unemployment benefit filings are often distorted by the Thanksgiving holiday, which can cause some people who may have lost jobs to delay filing claims."

"For now, the U.S. job market appears stuck in a "low-hire, low-fire" state that has kept the unemployment rate historically low. On Wednesday, private payroll data firm ADP estimated U.S. job losses of 32,000 in November. The surprisingly weak report may be discouraging for people looking for jobs, but it bolstered expectations that the Fed will cut its main interest rate next week."

Initial jobless claims dropped to 191,000 for the week ending Nov. 29, down from 218,000 the prior week and the lowest since Sept. 24, 2022 (189,000), while analysts had forecast 221,000. Thanksgiving holiday timing can distort filings and delay some claims. The low claims figure suggests layoffs remain muted even as large companies announced cuts, and hiring remains sluggish with employers in a wait-and-see mode. Large-company job-cut announcements often take weeks or months to show up in claims. ADP estimated 32,000 job losses in November, supporting expectations of a potential Fed rate cut.

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