New US jobless claims dip, but people are remaining unemployed for longer

The number of Americans filing new applications for jobless benefits dipped to the lowest in a month last week, consistent with a cooling but still-healthy US labor market that is likely to keep Federal Reserve officials from cutting interest rates any further in the near term.

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NEW YORK -

Initial claims for state unemployment benefits fell by 1,000 to a seasonally adjusted 219,000 for the week ended Dec. 21, the Labor Department said on Dec. 26. Economists polled by Reuters had forecast 224,000 claims for the latest week.

The claims data has been somewhat choppy since Thanksgiving, which economists see as resulting from seasonality issues associated with the increase in temporary workers that businesses bring on board for the holiday season. Still, the level of new benefits claims was in line with its average over the past year of just over 220,000, with little indication of moving higher as layoffs remain muted.

Meanwhile, those who have lost work are finding it harder to find a new job and are remaining on benefits rolls for a longer stretch and pushing up the ranks of those collecting unemployment benefits for more than the first week.