Initial jobless claims dipped to a seasonally-adjusted 198,000 last week, defying economist forecasts for an increase to 215,000. The figure marks a drop from the prior week's downwardly-revised 207,000, suggesting layoffs remain muted despite broader economic uncertainty. The four-week moving average also inched lower to 205,000.

This resilience comes as the U.S. economy shows mixed signals. While the labor market has cooled gradually, consumer spending—a key engine of growth—rebounded in November. Companies appear focused on squeezing more productivity from existing workforces rather than expanding headcounts, a trend that could influence Federal Reserve policy decisions.

Continuing claims, a proxy for hiring, also slid to 1.884 million. With economic growth hitting its fastest pace in two years during the third quarter, this latest data will be scrutinized to see if strength carried into 2026. Investors are watching for signs the labor market can withstand higher interest rates without tipping into recession.