The number of US workers filing new claims for jobless insurance fell more-than-expected to a nine-month low last week, data showed, suggesting the labour market was healing despite a setback in September. Initial claims for state unemployment benefits dropped 33,000 to a seasonally adjusted 521,000 in the week ended October 3, the lowest level since early January, the Labour Department said on Thursday.
Analysts polled by Reuters had forecast new claims slipping to 540,000 last week from a previously reported 551,000. A Labour Department official said seasonal factors expected a decline in new claims at the end of a quarter and a rise at the start of a new quarter. The claims report will help to calm fears of a deterioration in the labour market after data last week showed US employers cut more jobs in September than had been anticipated by the market.
The unemployment rate rose to 9.8 percent in September, a 26-year high. Economists reckon the Federal Reserve will probably refrain from raising interest rates, currently near zero, until the jobless rate peaks. The four-week moving average for new claims fell 9,000 to 539,750 last week, declining for a fifth straight week.
The four-week moving average is considered a better gauge of underlying trends as it irons out week-to-week volatility. The number of people collecting long-term unemployment benefits fell 72,000 to 6.04 million in the week ended September 26, the latest week for which the data is available. The four-week moving average of continuing claims dropped 15,750 to 6.1 million.
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