US Jobless claims fall to seven-month low
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The news: The number of Americans seeking unemployment benefits dropped to a seven-month low last week, hinting at a potential recovery in November's job growth following October’s slowdown caused by hurricanes and strikes.
The numbers: Jobless claims unexpectedly fell to a seasonally adjusted 213,000 for the week ending 16 November, the lowest level since April, according to the Labor Department.
The decline of 6,000, meant initial claims were lower than the 220,000 forecasted by a group of economists polled by Bloomberg.
Unadjusted claims also dropped by 17,750 to 213,035, with notable decreases in California, New Jersey, Ohio, Georgia and Texas.
Continuing claims, reflecting those still receiving benefits after an initial filing, rose by 36,000 to 1.91 million, the highest level in three years. This was partly attributed to the lingering effects of Boeing’s recent strike and hurricane disruptions.
The context: Job growth, which slowed in October due to strikes and hurricanes, is expected to rebound in November following the resolution of Boeing’s strike and rebuilding efforts in storm-hit areas.
The data, alongside the employment report for November – due 6 December – could shape the Federal Reserve’s decision on a potential December rate cut.
What they said: "There is no sign of incipient recession in these figures," said Carl Weinberg, chief economist at High Frequency Economics. "The labor market is softening but not imploding."
The sources: DOL release , Reuters , Bloomberg
