The number of Americans filing new claims for unemployment benefits rose modestly last week, while job losses in September eased, pointing to still tight labor market conditions.
Initial claims for state jobless benefits rose by 2,000 to an adjusted 207,000 for the week ended Sept. 30, the Labor Department said on Thursday. Economists interviewed by Reuters had forecast 210,000 claims for the latest week.
Jobless claims could rise this month because of the United Auto Workers (UAW) strike, now in its third week and forcing manufacturers to temporarily lay off more non-striking workers. Ford Motor, General Motors and Stellantis, Chrysler's parent, have laid off and fired hundreds of workers as a result of the strike.
The labor market is developing slowly, although conditions are still tight. The government reported on Tuesday that there were 1.51 job offers for every unemployed person in August and that unfilled positions rose by the highest rate in two years.
A separate report from global relocation firm Challenger, Gray & Christmas on Thursday showed American companies announced 47,457 job cuts in September, down 37% from August. However, the announced reduction is 58% higher than the same period last year. Employers announced 146,305 job cuts in the third quarter, down 22% from the April-June quarter.
Since March 2022, the Federal Reserve has increased its benchmark overnight interest rate by 525 basis points to the current range of 5.25%-5.50%.
The number of people receiving benefits after the initial week of aid, which is a sign, fell by 1,000 to 1.664 million during the week ending September 23, according to the claims report.
The claims data did not affect the September jobs report, which will be released on Friday. According to a Reuters survey of economists, NFP likely rose by 170,000 last month after rising 187,000 in August. The unemployment rate is expected to decrease to 3.7% from 3.8% in August.
