US workers filed 245,000 initial claims for state unemployment benefits during the week that ended December 23, according to seasonally adjusted figures published by the Labor Department. Data for the prior week was unrevised. The jobless claim level remained unchanged week-on-week. The underlying trend remained consistent with a tightening labor market at a 17-year low of 4.1 percent. Since mid-October, claims have been confined to a range of 223,000 to 252,000.
Last week marked the 147th straight week that claims remained below the 300,000 level, which is associated with a strong labor market. Labor market tightness and a strengthening economy stimulated the Federal Reserve to increase interest rates earlier this month for a third time this year. The US central bank has forecast the potential for three rate increases for 2018.
Last week, the four-week moving average of initial claims, which is seen as a measure of labor market trends because it reduces week-to-week volatility, rose 1,750 to 237,750. The four-week moving average for continuing claims, those with continued claims after an initial week, fell 4,250 to 1.92 million.