U.S. Jobless Claims Rose Last Week

By Matt Grossman

The number of Americans who filed for initial jobless benefits rose more than expected last week, adding a note of caution about the labor market's trajectory after data showed unexpectedly strong hiring in September.

In the week through Oct. 5, 258,000 initial jobless claims were filed, compared with 225,000 a week earlier, according to data from the Department of Labor. Economists polled by The Wall Street Journal had been expecting to see 230,000 initial claims.

The number of continued claims, a gauge of the size of the unemployed population, rose to 1.86 million in the week through Sept. 28, compared with 1.82 million the week before.

Last week's surprisingly robust report on job creation in September indicated that unemployment fell last month, calming many investors' concerns about how quickly the labor market had appeared to slow over the summer. Job gains last month were strong in service sectors such as leisure and hospitality, although manufacturing jobs declined.

Monthly data on October hiring, due Nov. 1, will be the Federal Reserve's last look at the labor market before its next rate-setting meeting, scheduled for the first week of November. The most-recent trading in futures markets suggests a 76% probability of a quarter-point rate cut, versus a 24% probability of no cut.

Write to Matt Grossman at matt.grossman@wsj.com.