Bloomberg (10/03/13) Shobhana Chandra

Fewer Americans applied for unemployment benefits last week than forecasted, indicating that employers are retaining their staffs. According to the U.S. Department of Labor, jobless claims rose 1,000 to 308,000 in the week ended Sept. 28.

Economists surveyed by Bloomberg had predicted a rise to 315,000. The less-volatile four-week moving average dropped to 305,000 last week, reaching its lowest point since May 2007. Any claims filed by furloughed federal employees will not be included in the figures in the coming weeks.

Wall Street Journal (10/03/13) James R. Hagerty; Doug Cameron; John W. Miller

Some defense contractors and manufacturing companies are experiencing layoffs and production disruptions due to the federal government’s shutdown. Nonessential government workers were furloughed on Tuesday, when Congress failed to authorize spending authority.

Without spending authority, the government has reduced its supply orders, hurting its suppliers and the companies linked to them. Many affected companies have not yet seen major effects, but predict that this could change if the shutdown continues for a week or more. Service-based companies, on shorter contracts, are expected to fare the worst.