The number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October.
The weekly unemployment claims report from the Labor Department on Thursday, the most timely data on the economy's health, also showed unemployment rolls shrinking significantly early this month. There is cautious optimism that the expiration of federal government-funded benefits on Sept. 6 will broaden the pool of labor in the coming months.
"Hiring demands remain robust, and the short supply of potential workers should make
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