The numbers: Initial jobless benefit claims fell by 13,000 to 216,000 in the week ended Sept. 2, the U.S. Labor Department said Thursday. This is the lowest level since mid-February.
Economists polled by The Wall Street Journal had estimated new claims would rise 2,000 to 230,000. Last week claims fell a revised 3,000 to 229,000. That compared with the initial estimate of a decrease of 4,000 to 228,000.
Claims have fallen for four weeks in a row.
Key details: The number of people already collecting jobless benefits in the week ended Aug. 26 fell by 40,000 to 1.68 million.
The four-week moving average of initial claims fell by 8.500 to 229,500. That’s the lowest since July.
On an unadjusted basis, claims fell 3,240 to 190,190 in the week.
Big picture: The unemployment report for August released last week indicated strong hiring with gradual softening in labor, said Michael Feroli, chief U.S. economist at JP Morgan Chase.
There is still no sign that companies are laying off workers.
What are they saying? “All signs seemed to point to higher claims, and yet they fell to the lowest level in nearly seven months. The claims data do not show any real evidence of a pickup in layoff activity. There have been brief periods of elevated counts during 2023, specifically in June, but these periods have been short-lived and often explainable by special factors,” said Tom Simons, money market economist for Jefferies.
Market reaction: Stocks
DJIA
SPX
were set to open lower on Thursday. The 10-year Treasury yield
BX:TMUBMUSD10Y
rose to 4.3%.
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