Weekly applications for jobless benefits are considered a proxy for layoffs.
The four-week average, which evens out some of the weekly volatility, ticked down by 1,000 to 212,500.Though some signs of labor market weakness surfaced in 2024, jobs are still plentiful and layoffs historically low.
Earlier this month, the Labor Department reported that job growth in December surged and unemployment fell. Employers added 256,000 jobs last month and the unemployment rate ticked down to 4.1%.The final jobs report of 2024 underscores that the economy and hiring were able to grow at a solid pace even with interest rates much higher than they were before the pandemic.
On Wednesday, as expected, the Federal Reserve left its benchmark lending rate alone after issuing three cuts late in 2024. Fed officials are keeping their eyes on inflation and the labor market for signs of a potentially weakening economy. They expect only two rate cuts this year, down from previous projections of four.
Though layoffs remain healthy by historical standards, several high-profile companies have announced job cuts in the past few months.
Facebook parent company Meta announced earlier this month that it was laying off 5% of its staff and spirits giant Brown-Forman — the maker of Jack Daniel’s — said it’s reducing its global workforce by about 12%.
Late in 2024, GM, Boeing, Cargill and Stellantis all announced layoffs.
The total number of Americans receiving unemployment benefits for the week of January 18 fell by 42,000 to 1.86 million.
