US Jobless Claims Rose to 233,000

There are more American citizens who filed for unemployment benefits that led to an increased over the anticipated results based on the reports last week, this indicates that the labor market resumed tightening ensued by the disruptions relative to the recent hurricanes.

While reports issued on Thursday showed less optimistic outlook for the economy.  The goods trade deficit grew by September while retail inventories decline, which convinced the Atlanta Federal Reserve to reduce the growth estimate of the GDP in the third quarter. Moreover, the contracts that were already signed in buying previously-owned residences remained unchanged in September. The initial claims for state unemployment benefits surged to 233,000 from 10,000 based on a seasonal adjustment during the week that ended on October 21, according to the Labor Department. The claims reduce to 223,000 a week earlier which is the lowest level recorded in March 1973.

According to the forecast from experts, claims increased to 235,000 in the recent week. This shows a decrease from a nearly three-year high that hit 298,000 at the beginning of September after the impact of Hurricanes Harvey and Irma that destroy Texas and Florida.

The disruptions of hurricanes significantly declined the claims data within the US continent, however, Hurricanes Irma and Maria continue to weigh on the claims for the Puerto Rico and the Virgin Islands. In addition to it, the claims data for the islands are set to be estimated, as stated by an official from the Labor Department. The jobs market is almost full in employment, as the unemployment rate came in higher at a 6-1/2-year low of 4.2 percent.