Jobless claims were higher than expected last week after hitting their lowest level since 1969.
Initial unemployment insurance claims for the week ended December 11 were 206,000, above the 195,000 estimate and a gain of 18,000 from the previous week.
The four-week moving average, which levels out volatility in the numbers, was 203,750, the lowest level since 1969
The numbers are more in keeping with the pre-pandemic environment rather than the large numbers shown since layoffs exploded in March 2020. Weekly claims peaked at 6.15 million in April 2020 and remained above 300,000 until October 2021.
The continuing claims data fell to the lowest level in over a year.
The data comes a day after the Federal Reserve said it will intensify the rate at which it is withdrawing economic support.
The central bank said it will reduce its asset purchases to $60 billion a month in Treasurys and mortgage-backed securities, half the pace prior to November. Fed officials said they expect to raise interest rates three times in the next five years.
The unemployment rate has declined substantially, and job gains have been solid in recent months, according to the Federal Open Committee.
A report showed that housing starts in November rose 11.8% from a month ago to a seasonally adjusted 1.68 million, while building permits rose 3.6% to 1.71 million. The numbers were well above the estimates.
