Fewer Americans applied for unemployment benefits last week, giving optimism that the labor market is starting to pick up.
Claims for U.S. unemployment benefits rose by 6,000 in the week ended October 1 to 401,000, which was much less than the forecast amount of 410,000 claims.
The data comes after yesterday’s private jobs report from ADP, which indicated that private payrolls rose by 91,000 beating expectations for a gain of only 75,000 jobs.
Meanwhile, August private payrolls were revised down to an increase of 89,000 from the previously reported 91,000.
Prices on U.S. 30-year Treasury bonds fell 1 point, adding to earlier losses on Thursday after government data suggested the labor market, while sluggish, is not deteriorating as some traders had expected.
Today’s jobless claims data and yesterday’s ADP payrolls data comes ahead of the most important monthly jobs data from the US Labor Department. The U.S. non-farm payrolls report is due tomorrow with expectations of a gain of 60,000 jobs in September, after being unchanged in August.