Citi economists say investors should view the decline in jobless claims around the holidays with caution. During the week of Christmas, jobless claims fell from 215,000 to 199,000, while forecasters had expected 220,000. Citi noted, “Seasonal adjustment issues during this year’s holiday week appear to be far more severe than in the past, and a more reliable signal from initial jobless claims data may not emerge until later in January.” However, the data shows that layoffs remain at low levels, and Citigroup expects nonfarm payrolls to increase by 75,000 in December, with the data set to be released next week. Citigroup also noted: “But we still expect the unemployment rate to rise to 4.7%, partly due to a renewed increase in the labor force participation rate.”