The numbers: Applications for unemployment benefits
fell in the first week of October and clung near a 50-year low,
suggesting that layoffs in the U.S. still haven’t risen much even as
hiring and the economy have slowed.
Initial jobless claims, a rough way to measure layoffs, declined by 10,000 to 210,000 in the seven days ended Oct. 5, the government said Thursday.
Economists polled by MarketWatch estimated new claims would total a seasonally adjusted 220,000.
What happened: Raw
or actual claims — before seasonal adjustments — rose in a handful of
large states including Texas and New York, but were either flat or lower
most every where else.
Claims remained elevated in Ohio and
Michigan, two states with large auto industries. Some 250,000 workers
have been on strike for nearly a month and the prolonged standoff has
forced parts suppliers to idle workers as well.
Once workers return to work and get back pay, they have to return any government benefits they received to tide them over.
The more stable monthly average of new claims, meanwhile, edged up by
1,000 to 213,750 nationwide. The four-week average usually gives a more
accurate read into labor-market conditions than the more volatile
weekly number.
The number of people already collecting
unemployment benefits, known as continuing claims, increased by 29,000
to 1.68 million. These claims have been below 2 million since early
2017.
Big picture: The U.S. labor market has cooled off along with the economy. The number of job openings have fallen 8% since January and hiring has also slowed sharply.
Economists
blame the ongoing trade war with China and the waning effects of the
Trump tax cuts, among other things. The U.S. can avoid recession,
however, if layoffs and unemployment remain low and consumers remain
fairly confident in the economy, they say.
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