Key facts
- New US jobless claims fell to 197,000 in the week ended October 3.
- Initial claims were lower than the 200,000 forecast by economists.
- Continued unemployment claims rose to 1.716 million in the week ended September 26.
- The median duration of unemployment was 11.5 weeks in September.
New Americans filing for state unemployment benefits decreased last week, with initial claims falling 2,000 to a seasonally adjusted 197,000 for the week ended October 3. This figure surpassed economists' forecasts of 200,000 and marks the fourth consecutive week that claims have remained near 57-year lows.
Economists attribute this trend to a "low-hire, low-fire" labor market, which persists despite a significant slowdown in job growth, evidenced by nonfarm payrolls increasing by only 29,000 in September. Factors such as tepid hiring, a shrinking labor pool, and general uncertainty are believed to contribute to this dynamic.
Minutes from the Federal Reserve's September policy meeting indicated that officials viewed the labor market as stable and close to maximum employment. Despite the Federal Reserve recently raising its benchmark interest rate by 25 basis points to the 3.75%-4.00% range, the underwhelming September payroll gains and cooler inflation readings have diminished expectations for another rate hike this month, though economists anticipate a December increase.
The report also showed that continued unemployment claims, a proxy for hiring, rose by 17,000 to 1.716 million in the week ended September 26. While these continued claims remain at a low level, the slow pace of hiring has led to longer periods of joblessness for some, with the median duration of unemployment at 11.5 weeks in September.