Initial applications for unemployment benefits in the United States rose last week to levels still consistent with a resilient labor market. First applications rose by 12,000 to 218,000 in the week ending December 23. This number tends to be unstable around the end of the year. The four-week moving average, which gives a clearer picture of the trend, remained little changed at 212,000 last week, the lowest since late October.
Continuous applications, which are an indicator of the number of people seeking unemployment benefits, rose to 1.88 million in the previous week. Despite last week's increase, first applications for jobless benefits remained at the lowest level in historical data, adding to evidence that companies are reluctant to cut jobs amid steady demand.
Thursday's claims data comes ahead of the government's monthly jobs report due out next weekend. Economists forecast a still-strong increase of 170,000 in wages in December, in line with resilient labor demand that has been key in driving the economy.
This kind of job growth reinforces some predictions that Federal Reserve officials, after nearly two years of aggressive interest rate hikes, will succeed in achieving a soft landing for the economy.
