US jobless claims hit four-month low
Make us a preferred source
Make us a preferred source on Google
The news: US jobless claims fell unexpectedly to a seasonally adjusted 218,000 in the week ended 21 September, hitting a four-month low, according to the Labor Department.
The numbers: That was a decline of 4,000 from the already lower-than-expected previous week and far from forecasts by Bloomberg and Reuters surveys of economists, which projected between 223,000–225,000 claims.
Continuing claims, accounting for people still receiving benefits, rose by 13,000 to 1.83 million.
The context: Despite slower hiring and an uptick in the unemployment rate to 4.2% in August, layoffs have remained subdued.
However, this month, various large companies have announced or implemented plans to scale back their workforces. Boeing's ongoing machinist strike has resulted in furloughs, while layoffs at firms like Paramount Global and General Motors could push claims up in the weeks ahead.
The weekly report has been in the spotlight recently, given the Fed is paying closer attention to the labour market as it starts to ease the high interest rates that have helped cool the economy and bring inflation back to target.
The central bank last week cut interest rates by 50 basis points to avoid skyrocketing unemployment.
The sources: US Department of Labor , Bloomberg
