Initial claims for state unemployment benefits dropped by 16,000 to a seasonally adjusted 199,000 for the week ended Dec 27, the Labor Department said on Wednesday. The labour market remains locked in what economists and policymakers describe as a "no hire, no fire" mode. Though the economy remains resilient, with gross domestic product increasing at its fastest pace in two years in the third quarter, the labour market has almost stalled. The unemployment rate increased to a four-year high of 4.6% in November, though part of the rise was because of technical factors related to the 43-day government shutdown. The record-long shutdown prevented data collection for October's unemployment rate.

Source: The Edge Markets December 31, 2025 14:02 UTC