The number of initial jobless claims unexpectedly declined, but the unemployment rate may remain high in December.

Odaily Planet Daily reports that while initial jobless claims in the U.S. unexpectedly fell last week, the unemployment rate is likely to remain high in December due to sluggish employment. The U.S. Labor Department reported Wednesday that seasonally adjusted initial jobless claims for the week ending December 20 fell by 10,000 to 214,000. Economists polled by Reuters had expected 224,000. Recent data has been volatile due to challenges in seasonal adjustments ahead of the holiday season. The labor market remains in what economists and policymakers call a “no hiring, no laying off” pattern. While the U.S. economy remains resilient, the labor market is virtually at a standstill. Continuing jobless claims rose by 38,000 to a seasonally adjusted 1.923 million in the week ending December 13. This increase is consistent with a survey released Tuesday by the Conference Board, which showed that consumer sentiment toward the labor market deteriorated this month to levels not seen since early 2021. The unemployment rate rose to a four-year high of 4.6% in November, though this was partly due to technical factors related to the government shutdown. (Golden Ten)