U.S. initial jobless claims fell 1,000 to a seasonally adjusted 197,000 in the week ended Sept. 19, below economists’ 201,000 forecast. Claims are near 57-year lows, partly due to seasonal-adjustment issues; low layoffs support a labor market that has regained footing.
Economists cited rising energy prices linked to the U.S.-Israeli war with Iran and import tariffs as headwinds to hiring. An immigration crackdown and retirements are also shrinking the labor supply. An S&P Global survey said companies in September were increasingly reporting difficulty finding suitable staff.
Continuing claims, covering people receiving benefits after an initial week, rose 2,000 to a seasonally adjusted 1.719 million for the week ended Sept. 12. Economists viewed that level as consistent with a stable jobless rate; unemployment was 4.1% in August, though more people who had lost jobs were experiencing long spells without work. The Fed last week raised its benchmark rate by 25 basis points to 3.75%-4.00%, its first increase in three years, and flagged further hikes.
