FX.co ★ US Initial Jobless Claims Fall Sharply

In the week ending January 10th, initial jobless claims in the United States decreased by 9,000 to a total of 198,000, defying market predictions that anticipated an increase to 215,000. This figure represents the second-lowest level recorded in the past two years. Concurrently, continuing claims saw a reduction of 19,000, bringing the total to 1,884,000 as the year turned. This trend aligns with market expectations and continues the downward pattern established since October, despite still being higher than the average levels seen since 2022. These results highlight a labor market characterized by low levels of firing and relatively modest hiring activities. Meanwhile, claims for unemployment benefits filed by federal employees, which are being closely monitored amid the U.S. government shutdown's impact, increased by 170, reaching a total of 646.