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US Initial Jobless Claims Soar to 1-Year High at 258,000
The number of Americans applying for unemployment benefits last week soared to the highest level in a year, with the labor market showing signs of weakness.
On Thursday, the 10th, data released by the US Department of Labor showed that the number of initial claims for unemployment benefits in the United States for the week ending October 5th jumped by 33,000 to 258,000, far higher than the expected 230,000, and the previous value of 225,000. This is the highest number of applications since early August 2023.
For the week ending September 28th, the number of continued claims for unemployment benefits increased by 420,000, reaching about 1.86 million.
The four-week moving average of unemployment benefit claims increased by 6,750 to 231,000.
Hurricane "Helen," Boeing strike... employment data becomes more complex
One of the reasons for the increase may be the impact of Hurricane "Helen," with a significant increase in unemployment benefit applications in Florida and North Carolina, and a surge in claims in states affected by the storm such as Tennessee, Virginia, and Kentucky.
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Economists expect the full impact of the hurricane to last for several weeks.
Under the influence of natural disasters, the Federal Reserve's measurement of US labor market data becomes more complex. After Hurricanes "Helen" and "Milton," the number of unemployment benefit claims may continue to fluctuate. Although many people in the southeastern United States are unable to work due to the destruction of the storm, some may also have difficulty or delays in applying for unemployment benefits.
In addition, the strike at Boeing has been going on for nearly a month. Although the striking workers are not eligible for unemployment benefits, their actions are spreading in the supply chain and other businesses that depend on Boeing, leading to temporary layoffs.Boeing has announced that tens of thousands of employees will take temporary leave. Approximately 33,000 machinists who left the company last month may have a negative impact on the October employment report, which is set to be released just a few days before the presidential election on November 5th.
Simultaneously, the U.S. September CPI data released shows that the deceleration of inflation in the United States was hindered in September, with both overall CPI and core CPI exceeding expectations across the board. Traders have increased their bets on a 25 basis point rate cut by the Federal Reserve in November.
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