USA 
United Kingdom
Unemployment claims in the US rose sharply last week, driven by the impact of Hurricane Helene and furloughs linked to Boeing amid ongoing strikes, according to the latest Labor Department data.
Initial jobless claims climbed by 33,000 to a seasonally adjusted total of 258,000 for the week ending October 5th. The surge outpaced predictions from economists, who had anticipated around 230,000 new claims. Major jumps in claims were reported in states like Florida and North Carolina, both heavily impacted by Hurricane Helene, which wreaked havoc across the Southeast in late September.
The storm’s damage is expected to continue affecting unemployment numbers, and with Hurricane Milton causing even more damage in Florida, jobless claims may face further disruptions. Milton’s path through the state included destructive tornadoes, widespread property damage, and significant power outages, adding to the region’s challenges.
Additionally, Boeing’s furloughs of tens of thousands of employees due to a nearly month-long strike among roughly 33,000 machinists are impacting related industries and suppliers, leading to temporary layoffs and further swelling the jobless claims.
The strikes may influence employment figures for October, set to be released ahead of the November presidential election. Striking employees are ineligible for unemployment benefits, but the indirect effects have contributed to the rise in claims, underscoring broader ripple effects through the economy.
Despite September’s nonfarm payroll growth reaching its highest in six months, with the unemployment rate decreasing from 4.2% to 4.1%, the labor market’s outlook remains complicated by these recent events. Economists suggest that the Federal Reserve is likely to overlook short-term fluctuations in jobless data, instead focusing on broader economic trends ahead of a potential interest rate cut in November.
