US initial jobless claims fall by 33,000

Providing some relief for the country's strained labor market, the initial claims for unemployment benefits in the US unexpectedly dropped by 33,000 to 521,000 for the week ended October 3.

The US jobless rate soared to a 26-year high of 9.8 per cent last month as companies continued to trim their workforce despite the economy showing signs of recovery.

For the week ended October 3, the US Department of Labor today said initial applications for unemployment benefits stood at 521,000. The number shows a decline by 33,000 compared to the previous week's revised figure of 554,000.

"The four-week moving average was 539,750, a decrease of 9,000 from the previous week's revised average of 548,750," the Department of Labor said in a statement.

Further, the count of people receiving jobless benefits fell by 72,000 to 6,040,000 for the week ended September 26.

In the previous week, the same stood at 6,112,000.

"The four-week moving average was 6,144,250, a decrease of 15,750 from the preceding week's revised average of 6,160,000," the statement added.

Even though, the US GDP contraction has slowed amid improving financial situation, the jobless rate is anticipated to climb before the economy fully stabilises.