US labour pulse: US unemployment claims dip to 214,000; data points to stable layoffs

US unemployment benefit claims fell again last week, underscoring a labour market that remains broadly stable even as hiring momentum shows signs of cooling, according to data released by the Labor Department.Applications for jobless aid dropped by 10,000 to 214,000 for the week ended December 20, down from a revised 224,000 a week earlier, AP reported. The figure came in well below the 232,000 claims forecast by economists surveyed by FactSet. The weekly report was released a day earlier than usual due to the Christmas holiday.Initial claims are widely seen as a near real-time indicator of layoffs, and the latest reading remains within a range considered historically healthy.The data comes against a mixed backdrop for the US labour market. The government last week reported a net gain of 64,000 jobs in November, following a loss of 105,000 jobs in October. The unemployment rate rose to 4.6% in November, its highest level since 2021.October’s decline in payrolls was driven largely by a sharp fall of 162,000 federal jobs, as workers exited following fiscal year-end and administrative cutbacks under the Trump administration. Subsequent revisions also shaved 33,000 jobs off August and September employment figures.Since March, job creation has averaged about 35,000 a month, roughly half the pace seen in the year ended March, as businesses grapple with uncertainty around President Donald Trump’s tariff policies and the lingering impact of elevated interest rates following the Federal Reserve’s aggressive tightening cycle in 2022 and 2023.Earlier this month, the Fed cut its benchmark interest rate by 25 basis points for the third consecutive meeting. Fed Chair Jerome Powell said the move reflected concerns that the labour market may be weaker than headline figures suggest, adding that recent job data could be revised down by as much as 60,000.Several large companies, including UPS, General Motors, Amazon and Verizon, have announced job cuts in recent months, though such reductions often take time to be reflected in official data.The Labor Department’s report also showed that the four-week moving average of jobless claims slipped by 750 to 216,750, smoothing out week-to-week volatility. Meanwhile, continuing claims — the number of people receiving unemployment benefits — rose by 38,000 to 1.92 million for the week ended December 13.