U.S. weekly unemployment claims rise moderately, suggesting no material change in labour market

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Thursday’s data reinforce views that recent hurricanes and strikes had resulted in job growth almost stalling in October

The number of Americans filing new applications for unemployment benefits rose marginally last week, suggesting no material change in labour market conditions and reinforcing views that hurricanes and strikes had resulted in job growth almost stalling in October.

Employment growth slowed sharply last month, with nonfarm payrolls increasing by only 12,000 jobs, the fewest since December 2020. That aligned with a jump in claims in early October as Hurricane Helene disrupted economic activity in the U.S. Southeast region. Applications stayed elevated through the middle of last month after Hurricane Milton lashed Florida.

Economists expect Federal Reserve officials won’t place much emphasis on October’s employment report as they evaluate the state of the economy. The U.S. central bank later on Thursday is expected to cut its benchmark interest rate again, this time by a quarter of a percentage point to the 4.50 per cent-4.75 per cent range.

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