US jobless claims drop but continuing claims hit 3-year high
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The news: US initial jobless claims dropped by 15,000 to 227,000 for the week ending 19 October, marking a second consecutive decrease despite disruptions from Hurricanes Helene and Milton.
Continuing claims – a proxy for those still receiving benefits – however, rose to nearly 1.9 million, the highest level in almost three years.
The numbers: The average forecast by economists polled by Bloomberg was for weekly claims of 242,000.
An increase of 4,275 jobless claims in Florida was outweighed by declines in Georgia, North Carolina, New York, Texas, Tennessee, Ohio and Michigan, the data shows.
Striking workers aren't eligible for benefits, but furloughed employees at companies like Spirit AeroSystems, a Boeing supplier, are affected.
The context: Analysts expect the Federal Reserve to remain cautious about interpreting the figures due to temporary hurricane and strike impacts.
What they said: “The impact of Hurricane Helene seems to be dissipating more rapidly than feared, which is a positive sign that the economic impact of the hurricane is not mushrooming through the region,” Stephen Stanley, chief US economist at Santander US Capital Markets, said in a note.
The sources: Department of Labor , Bloomberg
