Last week, the number of unemployment benefit claims in the United States fell to 216,000, the lowest level since May, as southeastern states recover from the impact of two hurricanes. Economists expect that Federal Reserve officials may overlook the employment report during their meeting next week and lower interest rates by 25 basis points
Last week, the number of initial jobless claims in the United States fell to its lowest level since May, as southeastern states recover from the impact of two hurricanes.
On Thursday, the U.S. Department of Labor reported that for the week ending October 26, the number of initial jobless claims was 216,000, compared to an expectation of 230,000 and a previous value of 227,000.
This marks the third consecutive week of decline in jobless claims. The number of claims is currently at its lowest level since May.
The number of people continuing to claim unemployment benefits fell to 1.86 million in the previous week.
The four-week moving average of new claims dropped to 236,500.
Due to hurricanes Helen and Milton impacting parts of the southern United States, leading to business shutdowns, this month's unemployment data is more volatile than usual. Additionally, the ongoing strike at Boeing may lead to layoffs among suppliers, further obscuring potential trends in the labor market.
Economists estimate that the impact of Helen and Milton on employment could be as high as 70,000 jobs.
Unadjusted for seasonal factors, initial jobless claims decreased last week, with North Carolina and Florida experiencing the largest declines due to the storms.
Over the past year, initial jobless claims have shown an upward trend but remain close to strong levels seen in the two years prior to the pandemic.
A report from global outplacement firm Challenger, Gray & Christmas on Thursday indicated that the number of planned layoffs by U.S. employers in October fell by 23.7% to 55,597. Boeing plans to lay off 17,000 workers. So far, the number of layoffs announced in 2024 is 3.7% higher than the same period last year.
Meanwhile, Challenger reported that hiring plans so far this year total approximately 750,300, the lowest level for the same period since 2016.
The Department of Labor is set to release October's non-farm payroll data on Friday. Economists expect that Federal Reserve officials may overlook the employment report in their meeting next week and lower interest rates by 25 basis points.