US weekly jobless claims near 57-year lows
SPY•Initial claims for state unemployment benefits fell 6,000 to 194,000 in the week ended October 17, near the 189,000 level reached in July, the lowest since 1969. Continuing claims rose 25,000 to 1.728 million.
1. Claims remain near lows
Initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 194,000 in the week ended October 17, below economists’ forecast of 200,000. Claims are close to the 189,000 level reached in mid-July, the lowest since 1969.
2. Continuing claims rise
The number of people receiving benefits after an initial week of aid increased 25,000 to a seasonally adjusted 1.728 million in the week ended October 10. The report said continuing claims exclude recent graduates and others ineligible because of limited work history; some long-term unemployed people may have exhausted their benefits.
3. Labor market and Fed
Payrolls increased by 29,000 in September after rising by 133,000 in August, while the unemployment rate was 4.2%. Economists described a “low-hire, low-fire” labor market and said claims data reduced the need for the Federal Reserve to tighten aggressively; they expected the Fed to hold rates next week and raise borrowing costs again in December.
