US jobless claims post higher-than-anticipated hike

Initial claims for US unemployment benefits posted a higher-than-anticipated jump of 6,000 applications to total 225,000 in the week ended Sept. 28, reflecting a potential slowdown in the country’s labor market.

This came against expectations for an increase to 220,000 claims compared with last week's reading, which was revised up by 1,000 to 219,000 in total.

Meanwhile, the four-week moving average for new claims, a better measure of labor market trends as it irons out weekly fluctuations, added 750 claims to amount to 224,250, versus last week’s revised-upward average of 225,000.

This data reflected weaker layoffs by US companies amid a pick-up in private sector hiring in September, according to ADP’s monthly report released yesterday, Oct. 2.

Investors are awaiting the US Labor Department’s monthly jobs report due tomorrow for a more comprehensive market snapshot. Expectations suggest the addition of 144,000 jobs in September after 142,000 new positions were rolled out in August.