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Jobless claims tumble to 218,000, well below estimate despite fears of labor market weakness
CNBC·2025-09-25 12:32

Labor Market Overview - Initial claims for unemployment insurance were reported at 218,000 for the week ending Sept. 20, which is a decrease of 14,000 from the previous week and significantly lower than the Dow Jones consensus estimate of 235,000 [1][2] - Continuing claims fell slightly by 2,000 to 1.926 million, indicating stability in the labor market [2] Federal Reserve Response - The Federal Reserve recently lowered its benchmark borrowing rate by a quarter percentage point to a range of 4%-4.25%, citing rising downside risks to employment as part of the reasoning for this decision [2][3] - The Federal Open Market Committee noted in its post-meeting statement that the easing was influenced by concerns over employment, despite the claims data suggesting companies are hesitant to lay off workers [3] Employment Trends - Nonfarm payroll growth has slowed significantly, and job openings are at a multi-year low, indicating a potential weakening in the labor market [3] - Despite a recent uptick in claims, the overall data suggests that companies remain reluctant to part with employees, even amid declining hiring rates [3]