Jobless Claims in US Hit Lowest Level Since January

Initial claims for unemployment insurance in the United States fell by 20,000, down to 201,000, during the week ended Saturday (Sept. 16).

The four-week moving average dropped by 7,750, to 217,000, the Department of Labor said in a Thursday (Sept. 21) press release.

With the decline to 201,000, jobless claims have fallen to their lowest level since January, and are close to their lowest level in over five decades, Bloomberg reported Thursday.

This figure was below all estimates in a Bloomberg survey of economists, highlighting the unexpected strength of the labor market, according to the report.

Additionally, continuing claims declined to 1.66 million in the week through Sept. 9. This is also the lowest level since the start of the year, the report said.

In comments supplied to the Department of Labor, three states that saw a decrease in initial claims of more than 1,000 — Ohio, Missouri and New York — attributed the drop to there being fewer layoffs in a number of industries during the week.

Each of these states highlighted one or more of the following industries among those experiencing fewer job losses: manufacturing; retail trade; transportation and warehousing; healthcare and social assistance; real estate and rental and leasing; and accommodation and food services.

The resilience of the labor market is evident in these figures, per the Bloomberg report. While the pace of hiring has slowed across various sectors, companies have managed to avoid significant layoffs. With low unemployment rates and limited layoffs, consumers have continued to spend, supporting economic growth.

Despite the positive trend in jobless claims, Bloomberg Economics predicts that the decline may not last, according to the report.

“In a period characterized by labor market uncertainty, the recent decline in jobless claims is a bright spot for policymakers hoping to engineer a soft landing for the economy,” Stuart Paul, U.S. economist at Bloomberg, said in the report. “We think the decline won’t last, however, as union strikes slow the production of cars and parts, and a potential government shutdown could put federal employees and contractors out of work temporarily. With high-profile layoff announcements likely taking effect over the next several weeks, we expect jobless claims to resume rising.”