The latest report from the Labor Department shows a slight decrease in the number of Americans filing for unemployment benefits, suggesting a robust labor market with high job security for most workers. Jobless claims fell by 2,000 to 210,000, with the four-week average also dropping by 750 to 211,000.
Currently, 1.8 million Americans are receiving unemployment benefits, reflecting a modest increase of 24,000 from the previous week. Despite recent job cuts at various companies, overall layoffs remain below pre-pandemic levels, and the unemployment rate has stayed below 4% for 25 consecutive months, the longest streak since the 1960s.
Economists anticipate some tightening in the job market this year following the strong economic growth in 2024. The US economy expanded at a solid 3.4% annual pace in the last quarter of the year, as per the revised estimate by the Commerce Department. This growth rate was slightly higher than the previous estimate of 3.2%.
The revised GDP figures confirm a slight deceleration from the rapid 4.9% expansion seen in the previous quarter. While there may be a gradual increase in initial jobless claims as the economy slows down, experts do not foresee a significant spike in layoffs. Nancy Vanden Houten, the lead US Economist at Oxford Economics, noted that while job growth is expected to slow, large-scale layoffs are not anticipated.
