US Initial Jobless Claims Rise to Over 2-Month High

Initial jobless claims in the US jumped by 8,000 from the previous week to 237,000 on the last period of August, the most in over two months, and firmly above market expectations that they would inch higher to 230,000. In the meantime, outstanding jobless claims fell for a second week to 1,940,000, the least in five months and below expectations of 1,960,000, despite remaining well above averages from before April. Despite the halt for the slide in continuing claims, the report continued to reflect a softening labor market, aligning with the Fed's rhetoric that a deteriorating jobs backdrop could warrant lower rates. Initial claims filed by federal government employees, which are under close scrutiny as initial firings by DOGE are due to end their severance period, fell by 73 to 515.