WASHINGTON (Reuters) – The number of Americans filing new claims for unemployment benefits rose moderately last week, while layoffs declined in September, pointing to still-tight labor market conditions.
Initial claims for state unemployment benefits increased 2,000 to a seasonally adjusted 207,000 for the week ended Sept. 30, the Labor Department said on Thursday. Economists polled by Reuters had forecast 210,000 claims for the latest week.
Claims could push higher this month as the United Auto Workers (UAW) strike, now in its third week, constrains supply chains and forces manufacturers to temporarily lay off more non-striking workers. Ford Motor, General Motors and Chrysler-parent Stellantis have furloughed and laid off hundreds of workers because of strike impacts.
The labor market is gradually cooling, though conditions remain tight. The government reported on Tuesday that there were 1.51 job openings for every unemployed person in August and unfilled positions increased by the most in two years.
A separate report from global outplacement firm Challenger, Gray & Christmas on Thursday showed U.S. companies announced 47,457 job cuts in September, down 37% from August. Announced layoffs were, however, 58% higher compared to 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 raised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, slipped 1,000 to 1.664 million during the week ending Sept. 23, the claims report showed.
The claims data have no bearing on September’s employment report, due for release on Friday, as they fall outside the survey period.
According to a Reuters survey of economists, nonfarm payrolls likely increased by 170,000 last month jobs after rising 187,000 in August. The unemployment rate is forecast dipping to 3.7% from 3.8% in August.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci and Chizu Nomiyama)
