The US Department of Labor announced yesterday, Thursday, that the number of applications for unemployment aid declined for the first time last week by 19,000 applications, bringing the total to 241,000 applications, in a move that contradicted analysts’ previous expectations that indicated 259,000 applications had been recorded.
This decline came after orders rose the previous week, especially in southeastern US states that were hit hard by Hurricane Helen.
Hurricane Helen
The damage resulting from Hurricane Helen, which struck states such as Florida, affected the ability of many residents to work, which in turn affected the filing of unemployment benefits, according to Bloomberg.
Despite the decline in numbers, the effects of the hurricane may continue to cause some fluctuations in numbers in the near term. This is indicated by economists who expect these fluctuations to subside over time, according to a Bloomberg report.
Unemployment claims continue to increase despite the improvement
On the other hand, the number of continuing unemployment claims rose during the week ending October 12 to 1.87 million, the highest level recorded since last July, indicating that there are still challenges facing the labor market, especially in areas affected by disasters. Natural.
Despite this rise, economists point out that overall unemployment numbers are still relatively low, in part because the number of Americans who have lost their jobs has remained largely low.
However, the average number of weekly applications over the past four weeks rose to 236,25, the highest level since August, reflecting increased volatility in the labor market.
Bloomberg expected that as time passes and economic activity returns to normal in the affected areas, the numbers may witness a gradual improvement, as the American labor market remains relatively strong. With layoff levels declining, economists expect the indicators to continue to improve despite current volatility due in part to recent natural disasters.
