The number of initial jobless claims in the US fell to 241,000 due to hurricane fluctuations

The Zhitong Finance App learned that in the southeastern US states affected by Hurricane “Helene,” the number of people applying for unemployment benefits dropped unexpectedly after rising sharply last week, and the data for the next few weeks may still fluctuate. In the week ending October 12, the number of initial jobless claims in the US fell by 19,000 to 241,000, lower than the median estimate of 259,000 in the economists' survey.

According to data released by the US Department of Labor on Thursday, the number of consecutive jobless claims rose to 1.87 million last week, the highest level since July last year.

Over the past period, Hurricane Helene and Hurricane Milton hit the southeastern United States, causing damage that left many people unable to work or apply for benefits. This means that initial jobless claims will continue to fluctuate in the short term, but economists expect this fluctuation to eventually subside. Prior to that, weekly initial jobless claims were very low, partly due to the relatively low number of unemployed people in the US.

Another reason for the drop in initial applications is that the number of applications in Michigan dropped sharply on an unadjusted basis. This is the biggest drop since February 2022, after a sharp rise in the previous two weeks due to manufacturing layoffs.

The four-week moving average of new applicants rose to 236,250, the highest since August last year.

The number of first-time jobless claims fell last week before seasonal factors were adjusted. Florida and North Carolina saw the biggest declines.