Jobless Claims Fall, Unemployment Still Low

- Initial Jobless Claims fell to 338K versus estimates of 335K and 353K the prior week.

- Continuing Claims fell to 2599K versus estimates of 2620K and 2658K prior.

BOTTOM LINE: The number of Americans filing first-time claims for unemployment benefits fell last week, Bloomberg reported. The four-week moving-average of claims rose to 340,250 versus 335,500 the prior week. The unemployment rate among those eligible to collect benefits, which tracks the US unemployment rate, remained at a historically low 2%. The ADP Employer Services report yesterday showed private companies added 189,000 jobs in November, more than three times the number economists had projected, versus 106,000 the prior month. I expect non-farm payrolls for November, which are released tomorrow, to come in around estimates of 80,000. The unemployment rate should also come in around estimates of 4.8%. I continue to believe the job market will remain healthy over the intermediate-term without generating substantial unit labor cost increases.