US Jobless Claims Unexpectedly Decline Amid Strong Labor Market
The US labor market continues to show strength, as evidenced by the unexpected decline in initial jobless claims. According to the Labor Department, initial claims for state unemployment benefits fell by 10,000 to a seasonally adjusted 196,000 for the week ended September 12.
Economists polled by Reuters had expected claims to rise to 208,000, but the decline may be due in part to volatility around public holidays. The Labor Day holiday last week makes it difficult to adjust the figures for normal seasonal patterns.
The number of Americans continuing to receive unemployment benefits fell by 39,000 to a seasonally adjusted 1.73 million in the week ended September 5. This suggests that unemployed workers are finding new jobs relatively quickly.
The Federal Reserve raised its benchmark interest rate for the first time since July 2023 on Wednesday, taking the target range to 3.75%-4.00%. Fed chairman Kevin Warsh attributed this decision in part to the labor market's relative stability and low layoffs.