US jobless claims dropped last week
WASHINGTON--The number of Americans filing applications for new unemployment benefits fell last week, indicative of a tight labor market in which employers are reluctant to lay off workers.
Initial jobless claims, a proxy for layoffs across the U.S., decreased by 5,000 to a seasonally adjusted 210,000 in the week ended Oct. 13, the Labor Department said Thursday. This matched expectations of economists surveyed by The Wall Street Journal.
The latest data offer the first glimpse of the impact of Hurricane Michael, which made landfall in Florida on Oct. 10, on jobless claims.
The early figures show claims in Florida, not adjusted for seasonality, fell last week. The number of people filing for unemployment benefits could grow in coming weeks as those who lost their jobs due to the storm are able to file for benefits.
Jobless claims touched the lowest level since 1969 early last month before edging slightly higher after Hurricane Florence made landfall in North Carolina. Some workers displaced by the storm were eligible to seek unemployment benefits.
The four-week moving average of claims, a more stable measure, rose by 2,000 to 211,750 last week.
More broadly, claims data shows that in a tight labor market employers are very hesitant to dismiss workers. The unemployment rate last month fell to 3.7%, also the lowest reading since 1969, and workers, particularly lower earners, are starting to see modestly higher raises.
The number of claims workers made for longer than a week decreased to 1,640,000 in the week ended Oct. 6, marking the lowest level for this figure since 1973. So-called continuing claims are reported with a one-week lag.