Unemployment claims in the United States drop sharply to 326,000, better than expectations

The total number of Americans filing unemployment claims fell sharply last week as improved federal unemployment benefits ended, the Labor Department reported Thursday.

Initial jobless claims totaled 326,000 seasonally adjusted for the week ended October 2, below the Dow Jones estimate of 345,000 and down from 364,000 the week before.

The figures have come at a time when most pandemic-related programs that extend unemployment benefits are ending, and amid hopes that the drop in Covid cases will trigger a series of more aggressive hires as we approach. autumn.

Stock market futures edged higher following the report, adding to already large gains. Yields on government bonds were also higher.

The weekly total was the lowest since September 4 and reverses an upward trend in claims over the past three weeks.

However, the four-week moving average, which smooths out the weekly volatility of the numbers, edged up to 344,000.

Continuing claims, which are one week behind and total those who have claimed at least two weeks of benefits, also registered a healthy decline, falling from 97,000 to 2.71 million.

There has been a noticeable change in benefit recipients under all programs.

That total, which runs through Sept. 18, has dropped to 854,638, almost all of which came from pandemic-related programs and extended benefits. There are now 4.17 million workers receiving benefits, up from just over 5 million the previous week and 24.6 million a year ago.

California accounted for much of the drop in original claims, with a decrease of 10,513, according to unadjusted figures. The District of Columbia experienced a decline of 3,951 and Texas of 3,099.

The report comes a day before the Ministry of Labor’s non-farm payroll count for September. Economists expect this report to show an increase of 5,000,000 jobs and a drop in the unemployment rate to 5.1%.