US jobless claims totaled 206,000 in the first week of September, decreasing by 1,000 from the prior reading and coming close to the 205,000 market expectation. The result kept new applications for unemployment benefits near historically low levels.
Continuing claims, which measure the number of people remaining on unemployment benefits, declined by 1,000 to 1.774 million in the final week of August. That was below the consensus forecast of approximately 1.78 million.
US Jobless Claims Continue to Signal Limited Layoffs
The weekly data suggest employers remain reluctant to reduce headcount aggressively despite uncertainty over growth and interest rates. Claims have stayed low since falling to 189,000 in mid-July, a level near a six-decade low.
The Department of Labor’s weekly releases are volatile and can be affected by holidays, seasonal adjustment and state-level processing. Economists therefore also monitor the four-week average and continuing claims when assessing the direction of the labor market.
The latest US jobless claims reading is unlikely to alter the Federal Reserve outlook by itself, particularly because it arrived alongside producer inflation data. Even so, persistently low layoffs could give policymakers more room to focus on above-target inflation when they meet next week.
