First time claims for unemployment benefits decreased by more than expected in the week ended December 19th, according to a report released by the Labor Department on Thursday, with initial jobless claims falling to their lowest level in well over a year.
The report showed that initial jobless claims for the week fell to 452,000 from the previous week's unrevised figure of 480,000. Economists had been expecting a more modest decrease in jobless claims to about 470,000.
With the decrease, jobless claims fell to their lowest level since the week ended September 6, 2008, when jobless claims came in at 447,000.
The Labor Department also said that the less volatile four-week moving average fell to 465,250 from the previous week's revised average of 468,000. The four-week moving average fell for the sixteenth consecutive week, dropping to its lowest level since September of 2008.
Additionally, the report showed a decrease in continuing claims, which measure the number of people receiving ongoing unemployment help.
Continuing claims fell to 5,076 million in the week ended December 12th, the latest week for which the government has data, from the preceding week's revised level of 5.203 million.
While the Labor Department also said that the number of people claiming emergency unemployment compensation benefits in the week ended November 5th rose by about 142 thousand to 4.368 million, those receiving extended benefits fell by about 145,000.
Peter Boockvar, equity strategist for Miller Tabak, said, "The data doesn't tell us though whether that was due to the exhaustion of benefits where people may reapply due to the recently enacted extension of benefits or due to people finding new jobs."
"Either way, the slowing pace of firings will inevitably lead to a rise in hirings if the economy continues to heal," he added.
Earlier this month, the Labor Department released a report showing that employment was nearly unchanged in the month of November, with the dramatic slowdown in the pace of job losses generating some optimism about the outlook for the labor market.
The report showed that non-farm payrolls edged down by 11,000 in November, while most economists had expected a decline of at least 100,000. The unemployment rate also unexpectedly dipped to 10.0 percent, encouraging hope that the labor market is starting to stabilize.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.