FX.co ★ US Initial Jobless Claims Fall to 2-Month Low

During the third week of September, initial jobless claims in the United States fell by 14,000 from the previous week, reaching 218,000, significantly below the market expectation of an increase to 235,000. This marks the lowest level in two months. Concurrently, the total number of outstanding unemployment claims decreased marginally to 1,926,000 in the second week of the month, representing the lowest level since late May. These figures alleviate some of the recent worries about a sharp downturn in the labor market, prompted by pessimistic job reports. Such concerns had previously prompted the Federal Reserve to resume its rate-cutting cycle, despite persistent inflation. Additionally, initial claims from Federal government employees increased by 63, reaching 635 on an unadjusted basis. Federal employment has come under increased scrutiny as reports indicate that agencies are expanding their workforce following pre-emptive layoffs initiated by the Department of General Employment (DOGE) earlier this year. Meanwhile, the potential for a government shutdown poses a risk to several jobs in this sector.