US unemployment claims rise slightly
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The news: US jobless claims rose slightly to 225,000 last week, up from 219,000, reflecting a stable yet cooling labour market ahead of Friday’s key unemployment data for September.
The numbers: The 6,000 increase in initial claims for the week ending 28 September came accompanied by a 1,00 fall in continuing claims to 1.826 million, data from the Department of Labour shows.
Meanwhile, a separate report showed services sector activity in September grew at the fastest pace since February 2023, suggesting ongoing resilience in the broader economy.
Data earlier this week showed manufacturing activity remained in contraction territory in September for the sixth consecutive month.
The context: The weekly data continues to show the labour market remains stable, supported by low layoffs and now falling interest rates.
But disruptions from Hurricane Helene and strikes at Boeing and major US ports are expected to present challenges and potentially distort the data.
Economists are divided on the potential hit from Helene, which caused major destruction and about 200 deaths across six southeastern states.
The strikes could cause temporary layoffs, further complicating the labour picture.
Attention now turns to Friday’s September employment report, which is anticipated to provide clearer insights into labour trends as the Federal Reserve increasingly relies on the labour market to inform its interest rate decisions.
The source: Department of Labor
