U.S. Sees Sharp Drop in First-Time Unemployment Claims

(MENAFN) The latest data from the US Labor Department on Thursday revealed that initial unemployment claims in the United States fell by 14,000 last week, settling at 218,000. This figure significantly undercut market expectations, which had anticipated 233,000 claims.

Last week’s numbers also reflected a decline from the previously revised count of 232,000 claims. The four-week moving average decreased by 2,750 to 237,500, down from an upwardly adjusted 240,250 the prior week.

In the week before, claims had dropped by 33,000 from a four-year peak of 264,000, indicating a volatile but easing trend.

August’s job growth further underscored the cooling labor market, with just 22,000 jobs added—far below analysts’ projections of 75,000. Additionally, the June non-farm payroll numbers were revised downward by 27,000 to a net loss of 13,000, marking the first monthly job loss since December 2020.

Annual revisions for non-farm payrolls covering the year before March 2025 unveiled a massive downward adjustment of 911,000 jobs from earlier estimates, the largest such revision in over 20 years.

Meanwhile, the unemployment rate ticked up to 4.3% in August from 4.2% in July, aligning with market forecasts.

This data signals notable turbulence in the US labor market, demanding close attention as economic conditions evolve.

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