U.S. applications for unemployment benefits fell to their lowest level in nearly a year last week, pointing to a still healthy labor market with historically low layoffs.

The number of people who applied for unemployment benefits in the first week of the new year fell to an 11-month low, the latest sign layoffs remain extremely low even as businesses cut back on hiring.

The number of Americans filing new applications for unemployment benefits unexpectedly fell last week, pointing to a stable labor market at the start of the year though some laid-off workers are experiencing difficulties finding new jobs.

Initial jobless claims for the week ended Jan. 4 dropped by 10K to 201K vs. the 214K consensus and 211K prior (unrevised), according to Department of Labor data released on Wednesday. The four-week moving average was 213,

The number of people filing new applications for unemployment insurance fell to the lowest level since last April as the job market showed signs of strength within a broader cooling off in employment conditions.

Initial applications for US unemployment capped 2024 at an eight-month low, reflecting the relatively muted levels of job cuts in a labor market that has remained surprisingly resilient.