Initial jobless claims fell to 227,000 for the week ending August 31, according to the Department of Labor. This marks a decrease of 5,000 from the previous week and the lowest level since July 6. The drop surpassed economists’ expectations of 230,000 claims.
- Continuing claims also surprised on the downside, falling to 1.838 million for the week ending August 24. This is a 22,000 decrease from the prior week, marking the lowest level since mid-June. Economists had projected an increase to 1.87 million.
State Spotlight: In North Carolina, initial claims fell for the second consecutive week, hitting 3,079 for the week ending August 30, down by 111 from the previous week. Like the national trend, this is the lowest number of claims since early July.
Why it matters: The drop in jobless claims bucks the trend seen in other labor market data this week, which pointed to a slowdown in hiring and weaker payroll growth. While job creation has been softening, with private payrolls adding just 99,000 jobs in August, the decrease in claims suggests layoffs remain low.
What’s next: All eyes turn to the nonfarm payroll report out Friday at 8:30 AM
