Fewer Americans applied for unemployment benefits last week, a signal that layoffs remain relatively low even as other indicators show the job market cooling.

New U.S. jobless claims for the week ending Dec. 27 dropped by 16,000 to 199,000, down from 215,000 the previous week and coming in below what analysts expected. Economists note that claims data can be skewed around the holidays because some workers who lose jobs may wait to file during shortened weeks.

Weekly unemployment filings are often viewed as a near real-time snapshot of layoffs. While the decline suggests employers are still holding back on widespread cuts, broader trends point to a softer labor market heading into 2026.

The national unemployment rate has climbed to 4.6%, the highest level since 2021, reflecting slower hiring and weaker job growth compared with earlier in the year. In Georgia, unemployment remains below the national average, continuing to indicate a comparatively steady job market across the state.