US labor market conditions showed renewed firmness, with initial jobless claims falling more than expected in the latest week. Claims dropped by -9k to 198k in the week ending January 10, below expectations of 208k and marking one of the lowest readings of the past year.
The four-week moving average of initial claims declined by -6.5k to 205k, the lowest level since January 20, 2024. The smoothing measure confirms that layoffs remain limited, with little evidence of sustained deterioration in hiring conditions.
Continuing claims also edged lower, falling 19k to 1.884 million in the week ending January 3. The four-week average was broadly unchanged at 1.889 million.
