The numbers: The number of Americans who applied for unemployment benefits rose slightly last week to 204,000, but layoffs remained extremely low and there was no sign of rising unemployment.
New jobless claims edged up from a revised 202,000 in the prior week, the government said.
Claims show a very low number of job losses, indicating the economy is still on firm ground. Unemployment claims typically rise when the economy weakens and a recession approaches.
Economists had forecast new claims in the week ended Sept. 23 to total 214,000.
Key details: New jobless claims fell in 33 of the 53 states and territories that report these figures to the federal government. Claims rose in 20 states.
The number of raw or actual claims — that is, before seasonal adjustments — fell to a nearly one-year low of 174,590. That’s also one the lowest levels in more than 50 years.
The number of people collecting unemployment benefits in the U.S., meanwhile, rose by 12,000 to 1.67 million. Most laid-off workers appear to be finding new jobs quickly.
Big picture: Americans feel secure in their jobs in an era of low unemployment and they are spending enough money to keep the economy growing. Most businesses see little need to lay off workers and lots of them are hiring.
So long as the jobless rate remains low, a recession would appear far off.
Looking ahead: “Low claims remain a bedrock reason why the expansion should continue. Employers still cling to employees because business in most industries is good and hiring is hard,” said corporate economist Robert Frick of Navy Federal Credit Union.
“A tight labor market means more hiring, more paychecks and more spending, even as consumers are tested by inflation and high interest rates.”
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open higher in Thursday trades.
Read the full article here