U.S. weekly initial jobless claims edge down to 197,000

The count of Americans submitting applications for their initial unemployment benefits slightly decreased last week, but still remained within a familiar range, indicating a steady U.S. labor market despite cautious hiring from employers. Initial jobless claims reached 197,000 in the week concluding October 3, a reduction of 2,000 from the previous week and lower than the forecasted 200,000.

Over a four-week average, which accounts for fluctuations in the weekly figure, jobless claims decreased to 198,000 from 200,500. Continuing claims, an indicator of hiring, rose to 1.716 million in the week ending September 26, up from the previous week’s revised 1.699 million. Thursday's data from the Labor Department provides one of the earliest insights into the job market following a nonfarm payrolls reading in September that was significantly below expectations, while the unemployment rate crept up to 4.2%.

The Federal Reserve is now widely expected to maintain interest rates at their current level at its upcoming meeting, although markets are betting that the central bank could raise borrowing costs in December to combat inflationary pressures. If the labor market continues to show strong signs, officials may have more flexibility to raise rates for the second time this year.