The number of Americans applying for unemployment benefits rose slightly in the last week, but still remained at historically low levels. According to a report from the Labor Department, jobless claims were up by 2,000 to 205,000 for the week ending Dec. 16 and the four-week average of claims fell by 1,500 to 212,000. Overall, 1.87 million Americans were collecting unemployment benefits for the week ending Dec. 9, which was little changed from the previous week. Weekly unemployment claims serve as an indicator for layoffs.

Despite high interest rates aimed at slowing hiring and cooling the economy, the claims have remained at extraordinarily low levels. The Federal Reserve began increasing interest rates last year to combat inflation as a result of a strong economic rebound from the COVID-19 recession of 2020. The Fed has raised its benchmark rate 11 times since March 2022.

However, the economy and job market have proven to be resilient. The unemployment rate has stayed below 4% for 22 straight months, marking the longest streak since the 1960s. The rate of hiring has decelerated but remains robust. This low unemployment rate combined with decelerating inflation has raised hopes of the Fed successfully managing a so-called soft landing, raising rates just enough to curb inflation without causing a recession.