Weekly jobless claims at 8-month low

Weekly jobless claims overview: 

• Who: The Labor Department released a report that showed jobless claims for the week ending Sept. 16 fell to an eight-month low. Continuing jobless claims fell 21,000 to 1.662 million. 
• Why: The report came out one day after the Federal Reserve said it was deciding to hold interest rates steady for now. 
• Where: The report was relevant to the United States. 

New claims for unemployment benefits fell to an eight-month low earlier this month, with weekly jobless claims decreasing 20,000 for a seasonally-adjusted total of 201,000 for the week ended Sept. 16, and continuing claims falling 21,000 to 1.662 million, according to a Labor Department report. 

The Labor Department also disclosed that unemployment rolls from the beginning stages of this month were the lowest they have been since January, Reuters reports. 

The report was published one day after the Federal Reserve chose to hold interest rates steady, despite a further interest rate increase reportedly expected by the end of the year, in addition to monetary policy being kept significantly tighter than expected through 2024. 

“The Fed was wise to keep another interest rate hike in their back pockets just in case, and it now looks like another rate hike is warranted,” Christopher Rupkey, chief economist at FWDBONDS in New York, said in a statement, according to Reuters. 

Amount of jobless claims in the lower range of weekly average for the year, according to report

The jobless claims amount of 201,000 is reportedly in the lower range of the weekly average of between 194,000 and 265,000. 

It is expected that jobless claims could end up increasing in the coming weeks, however, in the wake of a partial strike being conducted by the United Auto Workers that is causing automakers to temporarily lay off workers, Reuters reports. 

Ford has reportedly responded to the strike by furloughing 600 workers who are not on strike, while GM is expected to pause operations at its plant in Kansas, and Chrysler parent Stellantis saying it will be temporarily laying off 68 employees in Ohio. 

The Labor Department report also showed home sales are starting to decline, after previously showing signs of stabilizing amid a continued upward trend in mortgage rates, according to Reuters. 

In other news regarding unemployment, it was revealed in July that half of the states in the U.S. have reached either a record-low or near record-low unemployment rate. 

Have you filed a jobless claim this year? Let us know in the comments. 

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