The unemployment rate among people eligible for benefits held at 2.2 percent in the week ended Dec. 14.
Thirty-five states and territories reported a decline in claims, while 18 reported an increase. These data are reported with a one-week lag.
Initial jobless claims reflect weekly firings and typically wane before job growth can accelerate.
Southwest Hiring
Employment at U.S. passenger airlines is showing signs of stabilizing, according to the Transportation Department’s Bureau of Transportation Statistics, spurring more competition for jobs. Southwest Airlines Co., which last hired flight attendants from outside the company in 2011, received applications at a rate of 80 a minute, amassing 10,000 resumes for 750 openings.
“It was the first time we did that in a while, and of course anytime we do it, it’s like opening up the floodgates,” Chief Executive Officer Gary Kelly told employees in a weekly recorded message.
Payrolls expanded by 203,000 workers in November after a 200,000 gain in October, and the jobless rate fell to a five- year low of 7 percent, according to Labor Department figures.
The improvement in the economy and job market helps explain why the Federal Reserve decided to begin reducing stimulus. The central bank on Dec. 18 said it will trim monthly bond purchases to $75 billion from $85 billion starting in January.
Fed officials also raised their assessment of the outlook for the job market, predicting the unemployment rate will fall as low as 6.3 percent by the end of next year, compared with a September projection of 6.4 percent to 6.8 percent.