US weekly jobless claims fall below expectations
US initial claims for state unemployment benefits fell to 837K in the week ending Sep26, compared to 873K in the prior week and 850K forecast.
Continuing claims were down almost one million (11.76M vs 12.74M previous) falling below 12 million for the first time since mid-April and also beat forecast for 12.22 million.
Despite further fall in the number of Americans filling for unemployment benefits, figures remain at recession levels, pointing to the need for another government rescue package for businesses and unemployed.
Jobless claims have stalled at higher levels after falling below 1 million in August, remaining above their highest level at 665K, hit during 2007/09 Great Recession, though have dropped from a record 6.86 million at the end of March.
Initial recovery in labor market from the reopening of businesses, started to fade on threats of the second wave of Covid-19 infections that slows economic recovery.
Economists see risk of a slowdown in hiring through 2020 and into 2021, without another fiscal aid package.
Top Republican and Democrat officials met on Wednesday in attempt to broker a bipartisan deal on stalled negotiations.