United States weekly jobless claims fell to their lowest level in more than three years, easing fears of a steep downturn in labour market conditions after independent reports showed job losses accelerating in November.
The U.S Department of Labor reported on Thursday that initial claims for state unemployment benefits dropped by 27,000 to a seasonally adjusted 191,000 for the week ended 29 November, the weakest level since September 2022.
While holiday-related distortions around Thanksgiving may have contributed to the unexpected decline, the data continued to signal a labour market stuck in a holding pattern.
Unadjusted claims slumped by 49,419 to 197,221 last week, more than twice the 21,172 drop anticipated by seasonal factors.
Filings fell sharply in California, down 19,551, and dropped 8,349 in Texas, with sizeable declines also recorded in New York, Washington state and Florida.
Independent trackers, however, painted a different picture. Revelio Labs, which compiles monthly employment estimates from online profiles and other sources, said the economy shed 9,000 jobs in November.
That followed ADP’s report on Wednesday showing private payrolls suffered their largest monthly fall in more than two and a half years.
The contrast has reinforced the narrative of a stagnant labour market. Job cuts remain elevated across a number of industries, particularly among small and mid-sized businesses, while hiring remains muted.
A separate report from Challenger, Gray & Christmas showed planned job cuts by U.S.-based employers dropped 53% to 71,321 in November.
However, companies have still announced about 1.171 million layoffs so far this year, 54% higher than the same period in 2024, with most reductions driven by the technology sector as firms integrate artificial intelligence into certain roles.
The Bureau of Labor Statistics’ November employment report, originally due on Friday, has been delayed until 16 December due to the record 43-day government shutdown.
In its absence, some market participants expect the Federal Reserve to place more weight on ADP and Revelio Labs data at next week’s policy meeting.
Policymakers appear split ahead of the decision, with up to five members of the Federal Open Market Committee voicing scepticism about further rate cuts. At the same time, three members of the Board of Governors have argued for lower rates.
September’s unemployment rate rose to 4.4% from 4.3% in August. Weak hiring was also reflected in Challenger’s report, which noted that planned hiring by U.S. companies reached only 497,151 in the first 11 months of the year, the lowest January–November total since 2010 and 35% below the same period in 2024.
Verizon’s plan to eliminate more than 13,000 jobs contributed significantly to the November tally.
Tech sector employers reported 12,377 reductions last month, pushing their year-to-date total 17% higher than a year earlier.
AI-related layoffs alone accounted for 54,694 cuts this year.
Tariffs were responsible for more than 2,000 layoffs in November, and nearly 8,000 so far in 2025.
