The Department of Labor reported this morning that the much-watched first-time claims for unemployment benefits
rose to 381,000 in the week ending Dec. 24. That is 15,000 more than the previous week's revised figure. The four-week average analysts prefer because it flattens volatility in the weekly numbers fell to 375,000. This marks the fourth straight week of a decline in the four-week average, and the eighth decline in nine weeks.
Most analysts see this downward trend as a positive sign for a labor market that has been stuck for a year in a growth pattern that has not significantly reduced the unemployment and underemployment rates. The consensus of experts is estimating that a seasonally adjusted 150,000 new jobs were created in December. The government's monthly jobs report will be released Jan. 6.
But typically for the holiday season, the numbers are fuzzier than at other times of the year, and the department had to estimate results from seven states. That could make for a large difference when revisions are made next week. Some 3.6 million out-of-work Americans are collecting regular unemployment benefits. Another 3.5 million are collecting state or federally extended benefits. Slightly less than half of Americans who are officially out of work are currently receiving benefit checks. The official figures fail to account for large numbers of people who have dropped out of the workforce but still want a job.