Labor statistics were pointing a stronger USA economy. The previous week, claims stood at a revised level of 276,000.
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Initial jobless claims, a proxy for layoffs across the US, decreased by 13,000 to a seasonally adjusted 263,000 in the week ended October. 3, the Labor Department said Thursday.
“Claims are kind of signaling the “all clear” on the labor market after the employment data the last two months have been a lot more disappointing,”said Tom Simons, an economist at Jefferies in New York, who projected 260,000 claims”.
That was at the very least taking into consideration that mid-July whenever the wide range of claims reluctantly visited its most affordable because of the fact that 1973. In recent months, the four-week average has bounced around the lowest levels it has been since the dotcom bubble.
“The Labor Department noted no special factors in this week’s report, but did acknowledge that claims were estimated for South Carolina and Nevada”.
The number of people continuing to receive jobless benefits rose by 9,000 to 2.2 million in the week ended September 26.
It was also the 31 consecutive week that unemployment claims were below the threshold of 300,000, which is most often associated with a labor market that is strengthening.
While applications for jobless benefits point to limited dismissals, weakness in the global economy is starting to give a few companies reason to pause their hiring efforts.
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Employers in the US only added 142,000 new jobs during September and even less at 136,000 during August, which was far below the averages in prior months that were near 200,000. Worries about China helped persuade the Federal Reserve to put off an expected increase in interest rates in September. Continuing claims are reported with a one-week lag.
