"U.S. applications for unemployment benefits fell to their lowest level in more than three years last week, potentially complicating the Federal Reserve's upcoming decision on interest rates. 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."
"The job cuts announced recently by large companies such as UPS, General Motors, Amazon and Verizon typically take weeks or months to fully implement and may not be reflected in Thursday's data. For now, the U.S. job market appears stuck in a low-hire, low-fire state that has kept the unemployment rate historically low, but has left those out of work struggling to find a new job."
"It's not clear how much weight this week's layoff figures will carry with the Fed as the numbers can be volatile and prone to revisions. Complicating the Fed's upcoming decision is inflation, which remains above the central bank's 2% target. The Fed's preferred measure of inflation will be released in a government report on Friday and will also be factored into its rate call."
Initial jobless claims for the week ending Nov. 29 declined to 191,000 from 218,000, marking the lowest level since Sept. 24, 2022. Analysts had expected about 221,000 initial claims. Applications serve as a proxy for layoffs and a near‑real‑time indicator of labor market health. Recent announced cuts by firms including UPS, General Motors, Amazon and Verizon may not yet appear in the claims data. Private payroll firm ADP estimated 32,000 job losses in November, boosting expectations for a Federal Reserve interest-rate cut. Inflation remains above the Fed's 2% target, and the Fed's preferred inflation measure will be released Friday.
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