US jobless claims decline, says JP Morgan

US jobless claims declined, signaling a resilient labor market, according to JP Morgan

New US jobless claims declined in the week ended Oct. 25, according to economists’ estimates, signaling a resilient labor market despite limited hiring opportunities and companies’ reluctance to expand payrolls.

JP Morgan estimated that initial jobless claims fell to a seasonally adjusted 219,000, down from 232,000 in the prior week. Goldman Sachs forecasts were in a similar range, indicating broad alignment among major financial institutions.

Oren Klachkin of Nationwide said the drop in claims supports Federal Reserve policymakers who believe there is no need for further rate cuts in December, adding that the data underscores the economy’s underlying strength, according to Reuters.

JP Morgan also noted that the number of continuing claims rose slightly to 1.95 million in the week ending October 18, after seasonal adjustment — the highest in two and a half months — compared with 1.945 million a week earlier, broadly in line with Goldman Sachs’ estimates.