Jobless Claims Decline by 8,000
The number of Americans filing applications for unemployment benefits unexpectedly fell last week, a sign the job market is sustaining progress.
Jobless claims dropped by 8,000 to 287,000 in the week ended Sept. 27, from a revised 295,000 in the prior period, a Labor Department report. The median forecast of 49 economists surveyed by Bloomberg News called for 297,000. Continuing claims decreased to an eight-year low.
Firings are hovering close to decade lows as employers benefiting from rising demand retain staff, laying the ground for more hiring and wage gains. A report tomorrow is projected to show employers added to payrolls in September and the jobless rate held at a six-year low.
“The low level of layoffs indicates demand for workers is solid,” said Guy Berger, a U.S. economist at RBS Securities. “The economy in incrementally improving and employers want to hold on to workers and potentially add more.”
Economists’ claims estimates in the Bloomberg survey ranged from 285,000 to 320,000. The Labor Department revised the previous week’s figure from an initially reported 293,000.
The four-week moving average, a less volatile measure than the weekly figures, fell to 294,750 last week from 299,000.
The number of people continuing to receive jobless benefits declined by 45,000 to 2.4 million in the week ended Sept. 20, the fewest since June 2006. The unemployment rate among people eligible for benefits that week held at 1.8%.
Initial jobless claims reflect weekly firings and typically wane before job growth can accelerate.
