ZCZC
BCN-14
US-ECONOMY-EMPLOYMENT-INDICATOR
In hurricanes’ wake, US jobless claims hit 4-month high
WASHINGTON, Nov 22, 2018 (BSS/AFP) – New US claims for jobless benefits
unexpectedly rose to their highest level in four months last week as a post-
hurricane season uptick persisted, government data showed Wednesday.
Levels remained low by historical standards, however, and analysts said the
numbers did not yet show a clear upward trend.
The report, which was conducted during the survey week for the Labor
Department’s much more closely watched monthly employment report, also
suggested strong job creation was likely to continue in November.
With unemployment at its lowest level since 1969, employers have complained
over the last year of a worsening labor shortage and have hesitated to
dismiss workers who are increasingly difficult to replace — a situation
which has begun to drive up wages but also to eat into profits.
For the week ended November 17, claims rose by 3,000 to a seasonally
adjusted 224,000, the highest level since May 19. Analysts had expected a
lower reading of only 215,000.
A less volatile four-week moving average also rose by 2,000 claims to
218,500.
Back-to-back hurricanes in September and October slammed into the US
Atlantic and Gulf coasts, disrupting business for millions and likely driving
up claims for unemployment insurance.
In the following weeks, the numbers have yet to revert to trend, however.
Jim O’Sullivan of High Frequency Economics said the uptick was still
noticeable even when numbers from hurricane-hit states were excluded.
“The rise is too small to be signifiant yet, and the level remains
historically low, but a continued rise would be concerning,” he wrote in a
client note.
BSS/AFP/HR/0940