Announced this morning, Initial Jobless Claims were 227,000 for the week ending Oct 19th, less than expected and 15,000 less than the revised figure from the previous week. In addition, Continuing Claims were 1,897,000 for the week ending Oct 12th, more than expected and 28,000 more than the previous week’s revised figure.
Overall, initial claims were less than expected, decreasing sizably from the previous week, and have moved closer to levels prior to the recent hurricanes. Conversely, continuing claims were higher than expected suggesting some individuals remain out of work following the recent storms and the Boeing strike.
Initial claims remain well below 300,000 which is considered normal for a healthy U.S. economy, suggesting the labor market is still intact as we work into the upcoming election. As reports have been mostly positive so far this earnings season, companies also appear to be holding on to workers in the current environment. The upcoming payrolls report will be closely watched to see how the impact from the hurricanes affects the overall jobs and the unemployment rate.
In all, the yield on the 10-year US treasury initially ticks higher following the report and equity futures are mixed as we head into the market open.
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