[News] U.S. Jobless Claims Drop, but Continuing Claims Hit 3-Year High

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The U.S. initial jobless claims have decreased last week, while continuing claims have reached their highest level in nearly three years, potentially reflecting increased difficulty for workers in finding new employment.

The U.S. initial jobless claims for the previous week were 227,000, a decrease of 15,000 from the revised figure of 242,000 from the previous period, according to data released by the U.S. Department of Labor on October 24. The 4-week moving average was 238,500, an increase of 2,000 from the revised figure of 236,500 in the prior period.

 

The number of continuing unemployment claims was 1,897,000, an increase of 28,000 from the revised figure of 1,869,000 in the previous period, marking the highest level since November 3, 2023.

Typically, an increase in continuing claims reflects growing difficulties for workers to find new employment; however, the recent rise may have been influenced by the impact of Hurricanes Helen and Milton.

In addition, Boeing’s multi-week strike may have led to layoffs among some of its suppliers. According to Bloomberg reports, around 33,000 Boeing employees participated in the strike, with approximately 64% rejecting Boeing’s latest contract offer on October 23, extending the strike further.

The rise in initial jobless claims in early October, combined with the effects of the recent hurricanes and Boeing’s strike, may result in an uptick in the October unemployment rate or a slowdown in nonfarm payroll growth.