In the United States, the number of residents who filed new applications for unemployment benefits unexpectedly decreased last week, but at the same time, this indicator may remain elevated in the short term due to the effects of hurricanes Helen and Milton, which had a negative impact on the US labor market picture.
Initial claims for state unemployment benefits for the week, ended October 12, decreased by 19,000 to 241,000. It is worth noting that in this case, seasonal fluctuations were taken into account. The relevant information was published by the United States Labor Department on Thursday, October 17th.
The experts interviewed by the media predicted that 260,000 mentioned claims would be filed in the week ending October 12. It is worth noting that in the previous week, the corresponding indicator reached a mark that is more than a one-year high. This result is related to Hurricane Helen, which devastated Florida and large swathes of the US Southeast at the end of last month.
A deluge of claims due to Hurricane Milton is currently expected. In this case, it means a natural disaster that struck Florida a few weeks after Hurricane Helen.
The view of the situation in the United States labor market is worsened by such a circumstance as the month-long strike of approximately 33,000 Boeing machinists. It is worth noting that this strike is a factor of negative impact on the supply chain of the plane manufacturer. Boeing faced a lot of problems even before the mentioned event. Last week, the company announced 17,000 job cuts.
The claims report covered the week during which the United States government conducted a survey of employers for the nonfarm payrolls. The media, citing economists, report that it is highly likely that at a meeting of Federal Reserve officials in November, the employment report will not become one of the most important objects of attention. The relevant report will be published a few days before the election of the President of the United States, which will be held on November 5.
Nonfarm payrolls in September showed the largest growth in the last six months. The corresponding figure increased by 254,000. The unemployment rate was recorded at 4.1% last month.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
