U.S. new unemployment claims 214,000…below expectations

Continuing unemployment claims rebound to 1.92 million

According to data released by the U.S. Department of Labor on the 24th (local time), new unemployment claims for the week ending December 20 fell by 10,000 from the previous week to 214,000. This is below the median estimate of economists compiled by Bloomberg (224,000).

It is seen as consistent with a labor market in which layoffs have remained relatively limited. Although several large companies, including PepsiCo and HP, recently announced layoff plans, they have not yet clearly translated into a noticeable increase in actual layoffs.

By contrast, continuing unemployment claims increased to 1.92 million on a weekly basis. They rebounded after a sharp decline at the end of last month. Bloomberg News explained, "Volatility in unemployment claims has increased in recent weeks, which is a common phenomenon during the holiday season."

Eliza Winger, an economist at Bloomberg Economics, said, "New unemployment claims still indicate limited layoffs," but added, "Consumer perceptions of labor market conditions have somewhat deteriorated this month, which is consistent with the high level of continuing unemployment claims." He added, "Ongoing weakness in hiring could lead the U.S. central bank (Fed) to maintain an accommodative stance next year."

Reporter Im Da-yeon allopen@hankyung.com