U.S. initial jobless claims unexpectedly fell to a one-month low last week, but the unemployment rate is likely to remain high in December due to sluggish hiring. Initial jobless claims have fluctuated significantly in recent weeks as it has been challenging to adjust for seasonal variations ahead of the holiday season. The labor market is expected to remain in what economists and policymakers describe as a “hiring freeze” mode. Although the U.S. economy has remained resilient recently—with third-quarter GDP growth reaching its fastest pace in two years—the labor market has virtually stalled. Economists say labor demand and supply are being affected by import tariffs and restrictions on immigration.