U.S. weekly initial jobless claims rise to 236,000

Investing.com - The number of Americans filing new applications for unemployment benefits rose by more than anticipated last week, after sliding to a three-year low in the prior period.

Initial claims for state jobless benefits rose to 236,000 for the week ended December 6, increasing from an upwardly-revised level of 192,000. Economists had anticipated a reading of 220,000.

For the week ended on November 29, the original reading for jobless claims stood at a seasonally-adjusted 191,000, the lowest level since 2022. Some analysts flagged that difficulties around adjusting the claims for the Thanksgiving holiday may have contributed to the unanticipated downturn, although others suggested that it was still indicative of a jobs market that is relatively steady.

The latest four-week moving average, which aims to account for volatility in the weekly figure, stood at 216,750, just higher than the preceding total of 214,750.

Continuing jobless claims, a proxy for hiring which tracks the number of people receiving unemployment benefits after an initial week of aid, moved down marginally 1.838 million, compared to 1.937 previously.

The Federal Reserve slashed interest rates by a quarter-point on Wednesday, citing a desire to help prop up the labor market during a time when inflationary pressures are somewhat subdued, albeit above the central bank’s target.

Still, Fed Chair Jerome Powell later offered up little clues that more cuts may be coming in future months.

A fresh Fed rate decision is due in late January, and by then officials will have had a chance to pour through employment and inflation data which had been largely delayed because of a record-long federal government shutdown.

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