U.S. Unemployment Claims Decrease, Indicating Economic Stability

According to Odaily, the number of initial unemployment claims in the United States decreased last week, suggesting that the U.S. economy has avoided a wave of mass layoffs as 2024 draws to a close. The U.S. Department of Labor reported on Thursday that 219,000 people filed new unemployment claims in the week ending December 21, down from 220,000 the previous week, with market expectations at 225,000. The current U.S. unemployment rate stands at 4.2%, which remains relatively moderate by the standards of the past decade. However, throughout 2024, there has been a slight increase in the unemployment rate, indicating a softening labor market. This is reflected in the reduced number of job vacancies per job seeker, a decline in new job creation, and more industries cutting back on hiring. According to CME's "FedWatch," there is a 91.4% probability that interest rates will remain unchanged in January next year, with an 8.6% chance of a 25 basis point rate cut.