US jobless claims slow in last full week of 2025 amid weak labour market

According to new Labor Department statistics, the number of Americans who have applied for unemployment benefits has dropped to its lowest level in a month over the past week.

The release of the weekly data on Wednesday marked the end of a year marked by a weak labor market, which some analysts attribute to the lingering effect of US President Donald Trump’s tariff policy on hiring.

Experts also warn that the data from last week’s report may have been distorted by holidays in the year like Christmas because workers had fewer opportunities to file unemployment claims.

The last full week of 2025’s unemployment data is released on Wednesday. Jobless claims for the week ending on December 27 fell by 16, 000 to 199, 000. The Labor Department recorded 215 000 jobless claims last week, which was a significant improvement over the previous week.

Additionally, according to its report, the average jobless claims increase by 1,750 to 218,750, which evens out some of the week-to-week volatility.

The US’s unemployment rate soared to 4.6% in November, its highest level since 2021, when the nation was dealing with the COVID-19 pandemic’s effects.

In response to Trump’s extensive staffing cuts, many federal employees have left the workforce, largely due to this increase.

Jobless claims provide a real-time indicator of the state of the labor market and serve as a proximate for layoffs.

Unemployment rates

A labor market that has lost momentum in recent US government data, despite strong employment growth and other economic indicators like GDP, have remained.

Job creation has decreased by 35, 000 on average per month since March, compared to 71, 000 in the previous 12 months.

Federal Reserve Chairman Jerome Powell stated earlier this month that the US central bank had cut its benchmark lending rate out of concern that the job market may not be as strong as it appears.

Powell claimed recent job statistics could be revised down by as much as 60, 000 because of the decision, which was the Fed’s third consecutive rate cut.

Recent data revealed that despite declining employment rates, the US lost 105, 000 jobs in October, primarily as a result of retiring federal workers, but the US economy grew by 64, 000 in November.