FX.co ★ US Initial Unemployment Claims Sink

In the second week of September, the number of initial jobless claims in the United States witnessed a significant decline, dropping by 33,000 from the previous week to a total of 231,000. This figure came in well below the market's expected 240,000. This sharp decrease follows a peak of 264,000 recorded in October 2021, primarily attributed to a notable increase in claims across various industries in Texas. It has been suggested that this surge was partly due to inaccurately-filed and fraudulent claims, which misrepresented the true state of the data. Meanwhile, ongoing claims fell by 7,000 to 1,920,000 in the first week of September, surpassing forecasts of 1,950,000 and marking the lowest level since late May. These outcomes counteracted recent worries about a potential, uncontrolled decline in the labor market—a concern heightened by gloomy employment reports that prompted the Federal Reserve to resume its rate-cutting measures despite persistent inflation. Additionally, initial unemployment claims submitted by Federal government employees increased slightly by 45 to reach 572, amid the White House's ongoing initiatives to reduce the number of government workers.