US Jobless Claims Unexpectedly Tumble to 198,000

Summary

Initial US jobless claims fell to 198,000, the lowest since November, while continuing claims dropped to 1.884 million. Import prices rose just 0.1%, suggesting limited tariff-driven increases in export prices to the US. Michael McKee said the low claims indicate the labor market is holding in, with more Americans working, though the data could still have some holiday-related distortion.

• Initial jobless claims fell by 9,000 to 198,000, below 200,000.
• The prior week's claims were revised down to 207,000.
• Continuing claims declined to 1.884 million.
• Import prices increased only 0.1%, suggesting limited tariff-driven export price hikes.
• McKee said the labor market is holding in and layoffs remain low.
• Low claims may still reflect some holiday-related timing effects.
• A growing labor force makes the low claims more impressive as a share of workers.