Last week, the number of Americans filing for unemployment benefits unexpectedly decreased. However, due to the impact of Hurricanes Helen and Milton, there could be a potential rise in claims shortly, creating uncertainty in the labor market.
According to the U.S. Labor Department, for the week ending October 12, initial claims for unemployment benefits fell by 19,000, adjusted for seasonal fluctuations, totaling 241,000.
In the week ending October 5, there was an increase of 9,000 ongoing claims for unemployment benefits, bringing the seasonally adjusted total to 1.867 million.
Economists had predicted around 260,000 people would apply for unemployment benefits in the most recent week. The previous week saw claims soar to their highest level in over a year, largely due to Hurricane Helen wreaking havoc in Florida and across large parts of the Southeast in late September.
While the decline in claims linked to Hurricane Helen could be offset by an expected surge in claims from Hurricane Milton— which struck Florida weeks later—the overall outlook remains uncertain.
Boeing experienced significant disruptions as around 33,000 of its mechanics engaged in a month-long strike, creating a ripple effect on the aircraft manufacturer’s supply chain and its non-striking workforce, further clouding the labor market’s future. Before the strike by West Coast union workers, Boeing had already faced numerous challenges and announced a layoff of 17,000 employees last week.
The unemployment claims report coincides with the week when the government surveys employers for the nonfarm employment data in the October jobs report. Economists anticipate that Federal Reserve officials will not overemphasize the employment report in their meeting scheduled for early November, just days before the U.S. presidential election, when the report will be released.
