According to Labor Department data released Thursday, first time claims for weekly unemployment benefits rose to 225,000, for the week ending December 24th.
It marked an increase of 9,000 from the tally one week prior, of 216,000.
According to Refinitiv estimates, economists had expected 225,000 initial claims. For the last few months, weekly initial claims have been hovering around pre-pandemic levels, and only slightly above the 2019 weekly average of 218,000.
Eugenio Aleman, Raymond James’ chief economist. noted the steadiness of initial claims reports continues to paint a “very tight picture” of the US labor market.
Continuing unemployment claims, filed by people who have received unemployment benefits for more than one week, rose to 1.71 million for the week ending December 17th. The previous week had registered 1.67 million claims.
It is the highest reading since February, falling just shy of the pre-pandemic filings of 1.8 million. It may suggest workers are having more difficulty finding a new job. However analysts note weekly jobless claims can be highly volatile, particularly around the holidays, and they are frequently subject to revisions.