US weekly jobless claims increase slightly; third-quarter GDP growth trimmed

investing.com:

WASHINGTON (Reuters) — The number of Americans filing new claims for unemployment benefits rose just marginally last week, suggesting underlying strength in the economy as the year winds down.

Initial claims for state unemployment benefits increased 2,000 to a seasonally adjusted 205,000 for the week ended Dec. 16, the Labor Department said on Thursday. Economists polled by Reuters had forecast 215,000 claims for the latest week.

Though the claims data are volatile around this time of the year because of holidays, they remain consistent with a fairly healthy labor market, which is expected to keep the economy from recession next year. A survey from the Conference Board on Wednesday showed the share of consumers viewing jobs as plentiful was the highest in five months in December.

The claims data covered the week during which the government surveyed businesses for the nonfarm payrolls portion of December's employment report. Claims rose slightly between the November and December survey periods.

The economy added 199,000 jobs in November, below the monthly average of 240,000 over the past year, but higher than the 150,000 positions created in October.

The Federal Reserve held interest rates steady last week and policymakers signaled in new economic projections that the historic monetary policy tightening engineered over the last two years is at an end and lower borrowing costs are coming in 2024. Since March 2022, the U.S. central bank has hiked its policy rate by 525 basis points to the current 5.25%-5.50% range.

Data next week on the number of people receiving benefits after an initial week of aid, a proxy for hiring, could shed more light on the labor market's fortunes in December. The so-called continuing claims