US Jobless Claims Fall, But Labor Market Shows Strain

• US weekly jobless claims fell to 224,000 for the week ending December 13, down from 237,000.
• Despite the fall, the figure was higher than economists' forecast of 200,000, indicating underlying weakness.
• The unemployment rate rose to 4.6% in November, the highest since 2021, and job creation has slowed significantly.
• The Federal Reserve cut interest rates, citing concerns that labor market conditions may be weaker than current data suggests.
• Major companies like UPS, General Motors, Amazon, and Verizon have announced recent job cuts.

Why It Matters: US jobless claims dropped, but broader indicators suggest a weakening labor market and economic strain.