United States Initial Jobless Claims

Initial jobless claims in the US sank by 14,000 from the previous week to 218,000 on the third week of September, well below the market consensus that they would rebound to 235,000, to mark the lowest figure in two months. In the meantime, outstanding unemployment claims inched down to 1,926,000 in the second week of the month, the lowest since late May. The results pushed back against recent concerns of an aggressive deterioration in the labor market due to pessimistic jobs reports, which drove the Fed to restart its cutting cycle despite high inflation. In the meantime, initial claims by employees of the Federal government rose by 63 to 635 on an unadjusted basis. Federal government employment recently retook the spotlight amid reports that agencies are increasing their workforce on pre-emptive layoffs initiated by DOGE earlier this year, while a looming government shutdown may threaten a series of jobs.