US jobless claims slow in last week of 2023

Americans lined up for unemployment benefits at a decelerated clip in the week ended 30 December, according to the Labor Department, hitting the lowest claim count since October.

Jobless claims in the US fell by 18,000 to 202,000 in the final week of the year, firmly below market expectations for a reading of 216,000. The previous week's level was revised up by 2,000 to 220,000

Continuing claims fell by 31,000 to 1.88m in the earlier period, potentially indicating that Americans were having an easier time searching for new employment, while the four-week moving average, which aims to strip out week-to-week volatility, decreased by 4,750 to 207,750.

The jobless data continues to underscore the historical tightness of the US labour market, giving the Federal Reserve leeway to prolong its hawkish stance into the new year in order to fight inflation.

Reporting by Iain Gilbert at Sharecast.com