Weekly Jobless Claims Fall, Continuing Applications Rise

10:02 AM EST, 12/24/2025 (MT Newswires) -- Weekly applications for unemployment insurance unexpectedly declined, while continuing claims advanced, US government data showed Wednesday.

For the week through Dec. 20, the seasonally adjusted number of initial claims fell by 10,000 to 214,000, the Department of Labor said. The consensus was for the print to stay flat at 224,000 in a Bloomberg poll.

The four-week moving average totaled 216,750, decreasing by 750 from the prior week's unrevised average of 217,500. Unadjusted claims advanced by 8,832 to 264,009 on a weekly basis, according to official data.

"Despite ongoing seasonal volatility, initial jobless claims remain in ranges consistent with relatively steady labor market conditions and don't change (our) outlook for the labor market or (the Federal Reserve's) policy," Oxford Economics Lead Economist Nancy Vanden Houten said in remarks emailed to MT Newswires.

Last week, Fed Governor Christopher Waller said policymakers can afford to lower the benchmark lending rate further amid continued concerns regarding the labor market.

The probability of the Fed holding its policy rate steady next month rose to 87% on Wednesday from 85% on Tuesday, according to the CME FedWatch tool.

Seasonally adjusted continuing claims came in at 1.92 million for the week ended Dec. 13, topping Wall Street's views for 1.9 million. Continuing claims jumped by 38,000 from the previous week's level, which was revised down by 12,000. The four-week moving average declined by 5,250 to 1.89 million from the prior week's average that was revised down by 3,000, according to the DOL.

"Continued claims, which aren't immune to seasonal volatility, remain at a level consistent with a slow pace of hiring but aren't sending a signal that hiring conditions have gotten worse," according to Vanden Houten.

Earlier in December, delayed government data showed that job growth in the US rebounded in November after payrolls declined in October, while the unemployment rate shot up to 4.6% last month, the highest level in more than four years.

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