Weekly applications for unemployment insurance rose for the first time in four weeks, while continuing claims reached the highest level since November 2021, as US government data revealed on Thursday. The seasonally adjusted number of initial claims rose by 3,000 to 221,000 in the week ended Saturday, as reported by the Department of Labor.
Analysts had projected a level of 222,000 in a recent survey. Additionally, the previous week's reading was revised up by 2,000 to 218,000. The four-week moving average slipped by 9,750 to 227,250, while the prior week's tally was also adjusted upwards by 500 to 237,000. "Initial claims for unemployment insurance benefits remain low as the biggest issue for the job market isn't firing but weaker hiring," stated Ryan Sweet, chief US economist at Oxford Economics, in remarks emailed to MT Newswires.
"For the first time in three weeks, initial claims remained below our estimate of the break-even level, or that consistent with no monthly job growth." For the week ended October 26, seasonally adjusted continuing claims grew by 39,000 to 1.89 million, marking the highest level since November 13, 2021, per the DOL.
The consensus from Bloomberg indicated expectations for 1.87 million. Notably, the four-week moving average climbed to its peak since November 27, 2021, at 1.88 million, reflecting an increase of 8,500 from the previous week's downward adjustment. US job creation missed Wall Street's expectations for October largely due to disruptions caused by a Boeing (BA) worker strike and potential impacts from hurricane weather, as reported by the Bureau of Labor Statistics on Friday.
The strike, which extended over seven weeks, concluded earlier this week. Unadjusted claims surged by 10,827 on a weekly basis to 212,274, according to DOL data. "The increase in non-seasonally adjusted initial claims was concentrated in a few states, including California, Michigan, and Ohio," Sweet explained.
"There is the potential that the spillover effects from the Boeing strike, which was only resolved recently, boosted new filings in California, along with a strike at major hotels.".