U.S. weekly jobless claims unexpectedly decrease

The number of Americans filing new unemployment benefit applications unexpectedly declined last week, suggesting a continued low rate of layoffs that could alleviate concerns about the health of the labor market. Initial claims for state unemployment benefits fell by 4,000 to a seasonally adjusted 218,000 for the week ending September 21, according to the Labor Department's report on Thursday.

However, the number of individuals receiving benefits after the initial week of aid an indicator of hiring rose by 13,000 to a seasonally adjusted 1.834 million for the week ending September 14. Claims have generally remained stable since dropping from an 11-month high of 250,000 in late July, which was influenced by temporary shutdowns in the auto industry.

The data on continuing claims corresponds to the week during which the government gathered information for September's unemployment rate. The jobless rate fell to 4.2% in August, down from 4.3% in July. This increase in the unemployment rate from 3.4% in April 2023, driven by a surge in immigration that boosted labor supply, has raised concerns about a potential rapid deterioration in the labor market.