Labor Department statistics published Thursday show initial applications for U.S. state unemployment benefits dropped by 6,000 to a seasonally adjusted 213,000 for the week ending Nov. 16. The drop surprises analysts of resiliency in the labor market as economists polled by Reuters had projected claims to reach 220,000.
The decline in claims follows October's notable slowing down in job growth and corresponds with the survey period for the November nonfarm payrolls data. At Boeing among others, layoffs connected to Hurricanes Helene and Milton and aerospace strikes had pulled October's payroll increase to only 12,000—the lowest gain since December 2020.
From October's payrolls, economists computed that the hurricanes and strikes eliminated 100,000 to 125,000 jobs. But November is likely to recover as the Boeing (BA, Financial) strike has stopped and reconstruction projects create fresh employment. Analysts estimate that these elements might support at least 100,000 employment for November's payrolls.
Rising by 36,000 to 1.908 million for the week ending Nov. 9, continuing claims served as a proxy for hiring. When deciding whether to change interest rates in December, the Federal Reserve could consider the forthcoming November employment data.
