United States unemployment applications hit an eight-month low, reflecting the lower level of job cuts in the labour market, reported the news agency Bloomberg on Thursday, January 2.

New unemployment claims dropped by 9,000 to 2,11,000 in the week ended December 28, 2024. This drop was lower than the Bloomberg estimates, according to the news agency. 

The continuing applications data, which represents a proxy for the number of people receiving benefits, also dropped to a three-month low of 1.84 million in the week ended December 21, 2024, reported the news agency citing US Labor Department data.

According to the news report, the current levels for the initial unemployment claims are subdued, in line with the pre-pandemic levels, and consistent with a job market where companies generally hold onto their workers. 

Earlier in the summer, a rise in the United States unemployment rates raised concerns among people and eventually fueled the rate cuts in September, but as the year 2024 ended, the US labour market ended in “solid shape,” reported the agency citing US Fed chairman Jerome Powell’s speech.

Recent data shows that the labour market is moderating but remains solid overall. The weekly data, a four-week moving average of new applications for unemployment insurance a metric which helps to ease volatility, fell to 223,250 — the lowest since the end of November. 

Before adjusting for the seasonal factors the initial claims rose. States like Michigan, New Jersey and Pennsylvania marked the most increase while Texas and California posted the largest drops, as per the agency report.

The latest number for the recurring applications for US unemployment benefits increased 4.8 per cent, this comes after a 10.6 per cent rise in 2023.

The US employment data indicate that it takes longer for people who are out job hunting to find jobs, as employers are holding on to their existing workers.