The final reading for Q4 2025 shows the U.S. economy grew at an annualized rate of just 0.5%, a sharp slowdown from 4.4% in Q3 and slightly below the previous estimate of 0.7%. Much of the decline was tied to reduced government spending during the shutdown.
New unemployment claims increased by 16,000 to 219,000. However, this figure may understate the full impact, as some displaced workers are opting for gig or freelance work instead of filing for benefits, especially when unemployment support falls short of covering everyday expenses.
Meanwhile, continuing claims, which reflect the number of people still receiving benefits, dropped by 38,000 to 1.794 million. While that’s a modest improvement, the overall level remains elevated, suggesting many job seekers are still taking longer to secure new employment. Part of the decline may also be due to benefits expiring.