Weekly US jobless claims at two-month low; labor market gradually easing
By Lucia Mutikani
WASHINGTON (Reuters) -The number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting labor market conditions remain fairly tight even as demand for workers is easing.
With the report from the Labor Department on Thursday also showing the number of people on unemployment rolls remained elevated towards the end of December, financial markets continued to anticipate that the Federal Reserve would start cutting interest rates in March.
The government reported on Wednesday that job openings fell to near a three-year low in November. Labor market strength is expected to again shield the economy from recession this year.
«The labor market is not too hot and not too cold at the moment,» said Christopher Rupkey, chief economist at FWDBONDS in New York. «The total number of Americans on the jobless rolls receiving benefits remains elevated relative to prior year levels, but at the moment there is not enough unemployment to say the economy is on the downward slope to recession.»
Initial claims for state unemployment benefits dropped 18,000 to a seasonally adjusted 202,000 for the week ended Dec. 30, the lowest level since mid-October. Economists polled by Reuters had forecast 216,000 claims for the latest week.
Claims data tend to be volatile around this time of year because of holidays. They have largely bounced around in the lower end of their 194,000-265,000 range for 2023.
Unadjusted claims fell 6,820 to 268,020 last week. Claims plunged by 7,572 in California and tumbled 6,080 in Texas. That helped to more than offset notable increases in Pennsylvania, New Jersey, Michigan, Massachusetts and Connecticut.
The labor market is steadily cooling following 525
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