US weekly jobless claims fall as layoffs remain low
SPY•Initial jobless claims fell 2,000 to 197,000 in the week ended October 3, below economists’ 200,000 forecast. Continued claims rose 17,000 to 1.716 million.
1. Claims edge lower
Initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 197,000 in the week ended October 3. Claims have remained near 57-year lows for four straight weeks, even as September payrolls increased by 29,000.
2. Hiring remains subdued
Economists described the labor market as “low-hire, low-fire,” with employers hesitant to add staff while keeping workers. Continued claims, a proxy for hiring, increased 17,000 to 1.716 million in the week ended September 26. The median duration of unemployment was 11.5 weeks in September, near a 4-1/2-year high.
3. Fed outlook
Minutes of the Federal Reserve’s September 15-16 meeting said officials viewed labor market conditions as stable and generally close to maximum employment, with upside and downside risks broadly balanced. The Fed raised its benchmark rate by 25 basis points last month to a range of 3.75%-4.00%; economists expect another increase in December.
