U.S. jobless claims fell to 214,000 in the week ending Dec. 20, dropping by 10,000 from the prior period and coming in below market expectations, according to a report from the Bureau of Labor Statistics on Wednesday.
The data showed fewer Americans filing for unemployment support at a moment when economic nerves remain high.
Seasonal hiring and temporary layoffs around Christmas have pushed claims up and down for weeks, as early December saw a surge after claims touched a three-year low around Thanksgiving.
The latest BLS reading then showed that filings were cooling again, fitting the usual year-end pattern.
The Labor Department data was released during a period of persistent uncertainty, as inflation remains above the Federal Reserve’s target, hiring has slowed, and the unemployment rate has edged higher. Still, the flow of new jobless applications has stayed relatively contained through 2025, even as businesses face higher costs and tighter financial conditions, according to the Labor Department.
Meanwhile, the Conference Board reported its consumer confidence index fell to 89.1 in December from 92.9 in November, a fifth straight monthly decline, matching the longest losing streak since 2008.
The report explained that concerns about the labor market and business conditions are seriously weighing on households.
The gauge tracking current conditions dropped to 116.8, the lowest reading since February 2021. Expectations for the next six months held steady, showing no improvement. The Conference Board said, “The impact of high prices and concerns about the labor market have weighed on consumers all year.” That pressure has kept confidence near levels last seen during the pandemic period.
U.S. consumer confidence is at its lowest level since April
Economists had expected sentiment to recover after the record-long government shutdown ended. Instead, worries about inflation, tariffs, and politics lingered. Job growth remained slow. Unemployment continued to rise. Price pressures stayed elevated. Economists projected hiring would remain soft next year, with little relief on the unemployment front. Wage growth is also expected to cool further in 2026, widening spending gaps between income groups.
More respondents said jobs were hard to find, while fewer said jobs were plentiful. The gap between those views narrowed to its lowest level since early 2021, a key signal economists track closely, which dragged down assessments of household finances.
For the first time in nearly four years, families described their current financial situation as negative, the report said. Views on the future were slightly better, but still cautious.
Spending plans weakened across the board. Fewer consumers planned to buy major appliances, homes, or cars. Vacation plans also slipped. The Conference Board’s index focuses heavily on employment conditions.
A separate sentiment gauge from the University of Michigan, which leans more toward personal finances and living costs, showed a similar trend. Both measures remain depressed in December.
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