The number of Americans filing for government unemployment benefits for the first time rose more than expected last week, but did not stray far from the four-month low set the previous week.
Seasonally adjusted initial jobless claims climbed to 225,000 in the week ended Sept. 28, up from an upwardly revised 219,000 mark last week, Labor Department data showed on Thursday. Economists had expected 222,000.
The previous count for the week ended Sept. 21 was 218,000 — the lowest since mid-May.
Meanwhile, the four-week moving average, which aims to take into account the volatility of the weekly total, stood at 224,250, marginally down 750 from last week’s updated level.
The number of people receiving assistance after a first week, a measure of intake, also fell to 1.826 million in the week ended Sept. 21, a drop of 1,000.
The data sets the stage for the crucial nonfarm payrolls report on Friday, which is expected to show the US economy added slightly more jobs in September.
Along with the jobs report, investors will likely use a range of indicators this week — including job vacancies, private payrolls and indicators of manufacturing and services activity — to assess the state of the U.S. economy. labor market and the broader economy ahead of the upcoming Federal Reserve policy meeting in November.
The central bank cut interest rates by 50 basis points last month, with officials saying they wanted to support job demand at a time when inflationary pressures are easing.
Policymakers also signaled the start of a broader easing cycle, although it remains uncertain whether the Fed will opt for another jumbo cut or a more traditional quarter-point cut next month.
There is currently about a 63% chance the Fed will choose a 25 basis point cut and a 37% chance it will cut borrowing costs by half a percentage point, according to CME Group’s (NASDAQ:CME) FedWatch Tool .
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Reference;
Kanowsky, S. (2024) Initial jobless claims climb to 225,000 By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/economic-indicators/initial-jobless-claims-climb-to-225000-3647166 (Accessed: 3 October 2024).
