Claims for state unemployment benefits have fallen by 46,000 over the past two weeks.
The numbers: Initial jobless claims fell by 14,000 to 218,000 in the week ending Sept. 20, the Labor Department said Thursday. That’s the lowest level since mid-July.
Economists polled by The Wall Street Journal had estimated new claims would rise by 4,000 to 235,000.
Claims have been volatile in recent weeks, spiking by 28,000 to a nearly four-year high of 264,000 earlier this month. That raised some concerns that layoffs were rising. But claims have fallen by 46,000 in the past two weeks.
Key details: Another sign the labor market is not weakening is that the number of new claims based on actual filings — that is, before seasonal adjustments — fell by 14,822, to 180,611, in the latest week. That’s the lowest level in two years.
The number of people already collecting unemployment benefits in the week of Sept. 13 fell by 2.000 to 1.926 million, the government said. These “continuing claims” showed that it’s harder for laid-off workers to find new employment.
Big picture: A slew of recent data had raised concern that labor demand was softening and layoffs might pick up.
Federal Reserve Chair Jerome Powell said Wednesday that job growth has not been strong enough to prevent a rise in the unemployment rate. The Fed will only get one job report before its next interest-rate committee meeting in late October.
Looking ahead: “Today’s report refutes any theories that layoffs have suddenly taken off. It also undermines calls for more and bigger rate cuts, both at the Fed and in the market,” said Carl Weinberg, chief economist at High Frequency Economics.
