Jobless claims fall to 194,000, a three-month low, as layoffs stay scarce
Initial filings for unemployment benefits are near their lowest since the late 1960s in a low-hire, low-fire job market.
Initial claims for unemployment benefits fell to a seasonally adjusted 194,000 in the week ended Oct. 17, the Labor Department said Thursday, the lowest since July and below what economists expected. The four-week average fell to 197,750.
Claims are near their lowest levels since the late 1960s, just above the 189,000 touched in the week of July 18. The readings reflect a low-hire, low-fire labor market: employers are reluctant to cut staff even as hiring stays weak. Payrolls rose just 29,000 in September and have averaged about 69,000 a month this year, while the unemployment rate rose to 4.2%, largely because more people entered the labor force.
Federal Reserve officials meet next week. Markets expect the central bank to hold rates steady in October and then raise by a quarter point in December, with policymakers lately focused more on inflation running above their 2% target. For how stocks are trading, see our market story.
