US weekly jobless claims decrease as labor market regains footing
SPY•Initial jobless claims fell 1,000 to 197,000 in the week ended September 19, below economists’ 201,000 forecast. Continuing claims rose 2,000 to 1.719 million.
1. Initial claims fall
Initial claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 197,000 in the week ended September 19, the Labor Department said. Economists had forecast 201,000 claims. Claims are near 57-year lows, though seasonal-adjustment issues around moving holidays and residual seasonality may be pushing them lower.
2. Hiring remains hesitant
The underlying claims trend was described as consistent with a labor market that has regained its footing after stumbling through much of the summer, with low layoffs. Companies remain hesitant to increase hiring amid rising energy prices, tariffs, worker shortages linked to an immigration crackdown and retirements. A September survey noted increasing difficulty finding suitable staff.
3. Continuing claims rise
Continuing claims, a proxy for hiring, increased 2,000 to 1.719 million in the week ended September 12. Economists viewed the figure as consistent with a stable jobless rate; unemployment was unchanged at 4.1% in August, while more people who had lost jobs were experiencing long bouts of joblessness. Citigroup economist Veronica Clark said persistently lower continuing claims could point to an unemployment rate closer to 4% in coming months, but cautioned that a decline caused by a smaller labor force would not necessarily indicate a tighter labor market. The Federal Reserve raised its benchmark rate by 25 basis points last week to a 3.75%-4.00% range and flagged further increases.
