US Jobless Claims Fall to Lowest Level Since 2022 as Labor Market Holds Firm

Source: ETHNews Original Title: US Jobless Claims Fall to Lowest Level Since 2022 as Labor Market Holds Firm Original Link: https://www.ethnews.com/us-jobless-claims-fall-to-lowest-level-since-2022-as-labor-market-holds-firm/ The US labor market showed unexpected strength heading into the final month of 2025, with weekly unemployment insurance claims dropping to their lowest level in more than three years. According to data released at 8:30 A.M. ET on December 4, 2025, initial jobless claims fell sharply, signaling continued resilience despite broader economic uncertainty.

Initial Claims Drop to 191,000 – Lowest Since 2022

For the week ending November 29, seasonally adjusted initial claims declined to 191,000, a decrease of 27,000 from the previous week’s revised level of 218,000. This marks the lowest reading since September 24, 2022, when claims stood at 189,000.

The 4-week moving average also fell, dropping to 214,750, down 9,500 from the prior week. Both figures reflect a labor market that continues to avoid large-scale layoffs even as growth moderates.

Insured Unemployment Holds Steady at 1.3%

The number of Americans receiving ongoing unemployment benefits remained stable. For the week ending November 22, the seasonally adjusted insured unemployment rate was 1.3%, unchanged from the previous week.

Total continued claims came in at 1,939,000, down 4,000 from the week prior. The 4-week moving average eased to 1,945,250, reflecting a modest improvement in continued benefit usage.

Unadjusted Claims Also Decline Sharply

Unadjusted initial claims totaled 197,221, a drop of 49,419 (–20%) from the previous week, far exceeding seasonal expectations. Analysts expected a decrease of 21,172, but claims fell by more than double that amount. Compared with the same week in 2024, when claims were 211,226, the labor market continues to outperform on a year-over-year basis.

Unadjusted insured unemployment also moved lower, falling to 1,698,312, a 4.6% weekly decline.

State-Level Trends Show Mixed Movement

For the week ending November 15, the highest insured unemployment rates were recorded in:

• New Jersey (2.3%)
• Washington (2.3%)
• California (2.0%)
• Massachusetts (2.0%)
• Puerto Rico (1.9%)

The biggest increases in initial claims during the week ending November 22 were reported in California (+7,897), Illinois (+2,845), Pennsylvania (+2,472), Washington (+2,283), and New York (+2,235). The largest decreases were seen in Kentucky (–1,107) and New Jersey (–385).

Federal and Veterans’ Claims Show Movement

Initial claims filed by former federal employees dropped to 1,125, while claims filed by newly discharged veterans declined to 290. Continued claims among former federal workers fell sharply as well, while veteran claims saw a modest increase.

A Labor Market That Continues to Defy Expectations

Despite rising interest rates earlier in the year, slowing growth, and persistent uncertainty across financial markets, the US labor market continues to demonstrate remarkable stability. With initial claims now at their lowest level since 2022, policymakers and economists will watch closely to see whether this strength can be sustained into 2026.