• Prior 208K (revised to 209K)
• Continuing claims 1796K vs 1807K expected
• Prior 1805K (revised to 1798K)

The latest US weekly jobless claims data pointed to another healthy labor market reading, with initial unemployment claims falling more than expected as the temporary seasonal weakness seen in recent weeks continues to unwind.

Initial jobless claims declined to 187,000, well below the 212,000 consensus forecast and down from the prior week’s 209,000 (revised from 208,000). Meanwhile, continuing claims fell to 1.796 million, also beating expectations of 1.807 million, from a revised 1.798 million previously.

The report adds to growing evidence that the softer claims figures recorded earlier in the summer were largely driven by seasonal factors rather than a deterioration in labor market conditions.

The latest figures are consistent with other employment indicators, which continue to show that layoffs remain historically low despite elevated interest rates and the uncertainty surrounding monetary policy and geopolitical developments.

Overall, the sharp downside surprise in both initial and continuing claims reinforces the narrative that the US labor market remains healthy, reducing concerns that employment conditions are deteriorating and supporting the broader view that the economy continues to display remarkable resilience.

This article was written by Giuseppe Dellamotta at investinglive.com.