Jobless Claims Fall to 10-Month Low as Labor Market Holds Steady

Continuing unemployment claims dropped to their lowest level since April even as first-time filings spiked sharply in early December.

By yourNEWS Media Newsroom

The number of Americans receiving unemployment benefits has fallen to a 10-month low, according to the Department of Labor report released Dec. 11. Continuing jobless claims declined by 99,000 to 1.838 million for the week ending Nov. 29—the lowest level since early spring and below expectations of 1.95 million.

The data indicate that while overall layoffs remain limited, job creation has slowed, leaving many workers hesitant to leave existing positions. Job openings were steady at 7.67 million in October, according to the Bureau of Labor Statistics, as employers adopt a cautious approach amid economic uncertainty.

The quits rate—a measure of voluntary departures—fell to 1.8 percent, the lowest since August 2020. “For now, things are steady,” Indeed economist Cory Stahle said in a Dec. 9 note. “However, it feels like sooner or later, something will need to break—hiring will need to pick up, or layoffs will continue to rise.”

Meanwhile, initial claims for unemployment benefits rose 44,000 to 236,000 for the week ending Dec. 6, ending four straight weeks of declines. The prior week’s 192,000 reading was the lowest in over three years.

The four-week average of new claims, which smooths volatility, rose slightly to 216,750, while claims for federal workers declined by 483 to 643.

The long-term unemployment rate, representing those jobless for 27 weeks or longer, remains elevated at 23.6 percent.

The Federal Reserve, in its Dec. 10 Summary of Economic Projections, acknowledged the cooling labor market, removing the word “low” from its description of unemployment, which currently stands at 4.4 percent. Policymakers project modest improvement in 2026 and 2027, with rates edging down to 4.4 and 4.2 percent, respectively.

Despite three consecutive rate cuts this year, the Fed signaled only one additional cut for 2026. Chair Jerome Powell said the central bank would take a “skeptical eye” toward new data before its next meeting in late January.

Upcoming reports on employment and inflation—due Dec. 16 and Dec. 18—are expected to shape the Fed’s tone heading into the new year, as markets weigh whether inflation or labor remains the greater risk to the U.S. economy.