US Jobless claims hit five-month low
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The news: Initial US jobless claims fell by 12,000 to a seasonally adjusted 216,000 for the week ending 26 October, according to Labor Department data as the effects of hurricanes Helene and Milton diminished.
The numbers: That was the lowest level of applications for US employment benefits since May and below the average forecast by economists polled by Bloomberg, who had predicted 230,000 claims.
The largest decreases seen in North Carolina and Florida, both of which were hit hard by the storms.
People receiving benefits after an initial week of aid, a proxy for hiring, dropped to 1.86 million in the previous week.
Job growth for October was likely hindered by the storms and ongoing Boeing strike, which furloughed many suppliers’ workers.
A report from global outplacement firm Challenger, Gray & Christmas reported US-based employers planned 55,597 layoffs in October, a 23.7% drop from September, though cuts in 2024 remain up 3.7% year-over-year, Reuters reported.
The context: The weekly data comes ahead of the key Labor Department October's employment report, due on Friday. FactSet consensus estimates predict a net gain of 117,500 jobs during the month, a sharp drop-off from the surprisingly strong preliminary estimate of 254,000 jobs added in September. The unemployment rate is expected to hold steady at 4.1%.
But economists anticipate that Federal Reserve officials will likely overlook this data at next week's meeting and proceed with a 25-basis-point rate cut, according to Reuters.
The sources: US Department of Labor , Reuters, Bloomberg
