The total number of Americans filing unemployment claims fell sharply last week.
Preliminary filing for 326,000 unemployment benefits for the week ended Oct. 2 was lower than the 345,000 Dow Jones estimate and fell to 364,000 from the previous week.
The numbers came at a time when most epidemic-related programs that extend unemployment benefits are coming to an end, amid hopes that declining Govt cases will trigger more aggressive hiring that will lead to a decline.
The future of the stock market is slightly higher Following the report, it already adds strong gains. Government bond yields were also high.
The weekly total is the lowest since September 4 and is changing the course of claims that have been increasing over the past three weeks.
However, the four-week moving average softened the weekly volatility in the numbers, which rose to 344,000.
Consecutive claims, running a week later and those who filed benefits for at least two weeks, released a healthy decline from 97,000 to 2.71 million.
There was a significant change in the number of beneficiaries under all the schemes.
That total, which runs until September 18, has dropped to 854,638, all of which came from epidemic-related programs and extended benefits. Now 4.17 million workers are benefiting, compared to just 5 million in the previous week and 24.6 million a year ago.
California dropped a large portion of the initial demand, with a reduction of 10,513, according to unedited numbers. Columbia District fell 3,951 and Texas 3,099.
The report comes a day before the Department of Labor’s non-farm payrolls for September. According to the report, economists expect an increase of 5,000,000 jobs and a fall in the unemployment rate to 5.1%.
Become a better investor CNBC Pro.
Access stock selections, analyst calls, exclusive interviews and CNBC TV.
Register to get started Free trial today.