Labor

Dec. 31 (UPI) — The nation’s new jobless claims exceeded expectations with fewer than 200,000 reported for the week ending on Saturday, marking the third straight week that new jobless claims fell.

The number of new jobless claims fell by about 16,000 and posted a seasonally adjusted 199,000, the Labor Department announced on Wednesday.

The term “seasonally adjusted” refers to a statistical method in which seasonal effects, such as weather and holidays, are factored to better show the direction in which the nation’s job market is moving.

Last week’s decline was the third straight week and the seventh of the past eight in which seasonally adjusted new jobless claims declined across the country, MarketWatch reported.

Economists responding to a Wall Street Journal poll had estimated 220,000 new jobless claims for the week.

The prior week’s new jobless claims were revised up by 1,000, from an initial estimated of 214,000 to the adjusted total of 215,000.

The Labor Department reported 269,953 unadjusted new jobless claims last week, which was up by 5,333 and 25 from the prior week ending on Dec. 20. Economists had predicted an increase of 26,612 for a 10.1% increase last week.

The unadjusted new jobless claims for last week were down from 283,488 during the same period in 2024.

Meanwhile, the number of people with previously established unemployment claims fell by 47,000 to 1.87 million for the week that ended on Dec. 20.

The number of continuing claims had risen since the pandemic due to a slowdown in hiring, but they have not grown in number in recent months, according to MarketWatch.

While new and existing jobless claims are down, some economists cautioned that the slow hiring pace since the summer might herald an economic slowdown.

The nation’s total unemployment rate rose to 4.6% in November, which was its highest rate since September 2021.

The states with the five highest unemployment rates for the week ending on Dec. 13 were Washington state at 2.5%, followed by New Jersey, 2.4%; Massachusetts and Minnesota, 2.2%, each; and California, Illinois and Rhode Island at 2.1%, each.

Dec. 28 (Asia Today) — Hanyang University business professor Lee Woong-hee said South Korean companies face structural disadvantages versus fast-rising Chinese rivals, citing China’s lack of inheritance and gift taxes and fewer work stoppages tied to strikes.

In a column, Lee said many in South Korea view China as a socialist system with low economic freedom, but argued Beijing has increasingly tolerated business autonomy since its “reform and opening-up” era. He pointed to China’s 2004 constitutional recognition of private property rights as an example of what he described as a bold shift, even though the state retains land ownership.

Lee argued China has absorbed Western institutions such as private property rights and joint-stock companies into its system, rebranding them as “new socialism,” and said Chinese scholars have promoted theoretical justifications for that approach.

Lee said China holds advantages that South Korean firms do not, starting with taxation. He wrote that China does not currently levy inheritance, estate or gift taxes, unlike South Korea, where high inheritance and gift tax burdens can pressure founders to sell companies rather than pass them on to heirs.

He also said China faces fewer production disruptions from strikes. Lee noted China removed the right to strike from its 1982 constitution and allows only the All-China Federation of Trade Unions as a legal union structure, limiting independent organizing.

While acknowledging an increase in labor disputes, Lee cited reports estimating 1,509 labor incidents in 2024 and argued they remained relatively small-scale and dispersed, with authorities preventing wider escalation.

Beyond taxes and labor, Lee said China benefits from deeper pools of engineering talent and stronger industrial support. He also argued South Korea’s industrial electricity rates are significantly higher than China’s, and said Beijing offers broad policy backing for strategic industries.

Lee wrote that China’s startup momentum appears stronger, citing surveys suggesting higher startup rates among Chinese graduates and pointing to global rankings that placed Beijing among leading startup cities. He said China ranks second globally in the number of unicorn companies after the United States.

Lee concluded that China’s older socialist traits appear to be fading and that its entrepreneurial culture is reasserting itself, arguing it may only be a matter of time before China becomes more business-friendly than South Korea.

— Reported by Asia Today; translated by UPI

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Caption:Professor Lee Woong-hee of Hanyang University’s business school. /Asia Today