U.S. Unemployment Claims Rise by 14,000

The number of Americans applying for unemployment benefits rose by 14,000 last week, reaching 217,000, yet layoffs remain historically low, indicating a resilient job market. The four-week moving average of claims decreased slightly to 212,750, and the total number of beneficiaries fell by 18,000 to 1.86 million. Despite some signs of labor market weakness, December's job growth showed employers added 256,000 jobs, lowering the unemployment rate to 4.1%. The economy appears to be transitioning into a post-COVID phase characterized by steady growth and elevated borrowing costs, with the Federal Reserve likely to refrain from further rate cuts after three reductions late in 2024. Additionally, U.S. job openings unexpectedly increased to 8.1 million in November, the highest level since February, suggesting continued employer demand for workers. However, several high-profile companies, including Meta and Brown-Forman, have announced job cuts recently, reflecting uneven trends across sectors.