The US labor market slows as unemployment aid claims drop and long-term job scarcity rises amid hurricane disruptions.
Mid-October saw the highest number of benefit recipients in nearly three years but new applications for U.S. unemployment aid fell unexpectedly last week, signaling increased difficulty for the jobless in finding new positions.
Likely reflecting the fading impact of Hurricane Helene, which earlier in the month had pushed applications to a 1.5-year high, The Labor Department reported the second consecutive weekly drop in unemployment filings. The claims related to Hurricane Milton were less severe than initially anticipated.
Along with a strike involving about 33,000 Boeing workers and the labor market distortions from these hurricanes have complicated the economic outlook. Economists are still promising and predict that Federal Reserve officials will likely overlook any slowdown in job growth or a potential uptick in the unemployment rate during their upcoming meeting.
Mixed picture is expected to be reflected in October employment report, which will be released just days before the U.S. presidential election. Chief economist at High Frequency Economics stated that “the labor market is softening but not imploding,” the signs of softening, Carl Weinberg claimed. He noted that stabilizing the job market and economy before any potential recession is the aim of Federal Reserve’s gradual easing policies in the week ending Oct. 19
Initial claims for state unemployment benefits dropped by 15,000 to a seasonally adjusted 227,000. Economists had predicted 242,000 claims. Unadjusted claims also saw a decline, falling by 22,634 to 202,635. A rise in claims from Florida was offset by significant decreases in states like Georgia, North Carolina, New York, Texas, and others.
There appears to be no drastic shift here appears to be no drastic shift while the hurricanes and wallop have obscured the labor market’s full picture. With most regions reporting modest growth or little change, The Federal Reserve’s “Beige Book” described employment in early October as “slightly increased,”
Source: (Reuters)