U.S.
US jobless claims jump to a year high, partly boosted by Helene
Bloomberg
October 10, 2024
Piles of debris from Hurricane Helene in Treasure Island, Fla., on Oct. 7. (Tristan Wheelock/Bloomberg )
Applications for U.S. unemployment benefits rose last week to the highest in over a year, reflecting large increases in Michigan, as well as states affected by Hurricane Helene.
Initial claims increased by 33,000 to 258,000 in the week ended Oct. 5, the highest since August 2023. That figure was above all estimates in a Bloomberg survey of economists.
Continuing claims, a proxy for the number of people receiving benefits, rose to 1.86 million in the previous week, according to Labor Department data released Thursday.
The jobless claims data are likely in for stretch of volatility in the wake of hurricanes Helene and Milton, complicating efforts by the Federal Reserve to accurately gauge underlying developments in the US labor market. While many people in the southeastern U.S. are unable to work because of the storms’ destruction, some may also have difficulty or delay applying for unemployment benefits.
The four-week moving average of new applications, a metric that helps smooth out volatility, rose to 231,000.
Before adjusting for seasonal factors, initial claims also rose last week. Besides North Carolina, other Southeastern states affected by Helene saw jumps in applications, including Florida, South Carolina and Tennessee.
Michigan has now seen large jumps back-to-back in weekly filings, rising by 10,667 in total over the last two periods. The increase in the week ended Sept. 28 was due to layoffs in manufacturing and management of companies, according to the release. There was no commentary about last week.
With assistance from Vince Golle.