US jobless benefits filings drop to 191,000, reaching lowest level since September 2022

Applications for unemployment benefits in the U.S. fell to their lowest level in over three years last week, potentially making it more difficult for the Federal Reserve to make a decision on future interest rate changes. According to a report from the Labor Department on Thursday, the number of people seeking jobless benefits for the week ending November 29 dropped to 191,000, down from the previous week's figure of 218,000. This is the smallest number since September 24, 2022, when claims stood at 189,000.

Economists surveyed by FactSet had predicted that initial claims would reach 221,000. Claims for unemployment benefits are often seen as an indicator of layoffs and provide insight into the overall health of the labor market. However, job cuts announced by major corporations such as UPS, General Motors, Amazon, and Verizon typically take weeks or even months to fully take effect, and may not yet be reflected in the most recent data.

The four-week moving average of claims, which smooths out week-to-week fluctuations, decreased by 9,500, reaching 214,750. Meanwhile, the total number of Americans receiving unemployment benefits for the prior week, ending November 22, dropped by 4,000 to 1.94 million.