The Labor Department reported on the 17th that initial jobless claims for the week ending September 12, on a seasonally adjusted basis, fell by 10,000 from the previous week to 196,000, an unexpected decline that came in below the 208,000 forecast by economists surveyed by Reuters. The drop is believed to reflect volatility surrounding the previous week's Labor Day holiday and may overstate the health of the labor market, but it remained consistent with an underlying trend that has been recovering since the summer. Continuing claims for the week ending September 5, on a seasonally adjusted basis, fell by 39,000 to 1.73 million. This data covers the survey week for the September employment report. The stability of the labor market stems mainly from low levels of layoffs, and economists note that companies remain cautious about expanding their workforces.
