The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, but could remain high in the near term as the effects of hurricanes Helene and Milton darken the labor market outlook.
There were 19,000 fewer initial claims for state unemployment benefits in the week ending Oct. 12, for a seasonally adjusted total of 241,000, the Labor Department reported Thursday.
Economists polled by Reuters had forecast 260,000 claims. In the previous week, they had reached their highest level in a year, due to Hurricane Helene, which devastated Florida and large areas of the southeastern United States in late September.
The decline in claims after Helene is likely to be offset by the flood of claims expected from Milton, which hit Florida weeks after Helene.
A strike affects the labor market
The month-long strike by some 33,000 Boeing BA.N operators, which is affecting the plane maker’s supply chain and other workers, is also clouding the labor market picture.
The claims report covered the week during which the government surveyed employers for the nonfarm payrolls component of the October employment report. Economists hope that Federal Reserve officials will not place too much importance on the jobs report when they meet in early November.
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