"The low level of layoffs indicates demand for workers is solid"
- Guy Berger, U.S. economist at RBS Securities Inc.
The number of Americans seeking unemployment aid declined last week, adding to signs the U.S. job market continues to show steady progress. Jobless claims fell by 8,000 to 287,000 in the week ended September 27, down from a revised 295,000 in the prior week, according to Labor Department. Economists, however, had forecasted a figure of 297,000. Along with initial jobless claims, continuing claims also dropped, hitting the lowest level in eight years. The four-week average, which is considered to be a less volatile measure, declined 4,250 to 294,750. Overall, the number of people continuing to receive jobless benefits declined by 45,000 to 2.4 million in the week ended September 20, which is the fewest since June 2006, which predates the beginning of the Great Recession by 18 months. Applications are a proxy for layoffs. The recent drop indicates that employers are keeping their employees, as they anticipate continued economic growth and may be contemplating more hires. Economists say the government's
September payrolls data due to be released today might show a rebound from the August figures. The consensus forecast is that employers added 215,000 jobs last month after 142,000 the prior month. The unemployment rate, however, is predicted to remain at 6.1%.
© Dukascopy Bank SA