Weekly U.S. jobless claims rose by 10K to 233K or the week ending October 21st. Initial claims were expected to hit 235K suggesting that the labor pool is in a brief recovery mode after the recent hurricanes rattled the market.
Despite the setbacks caused by a seemingly never-ending hurricane season, last week marked the 138th straight week that claims for unemployment benefits remained under the 300K benchmark. The four-week moving average for new claims, which is considered a more reliable measuring stick of the labor market, was drawn down to 239K.
The continual tightening of the labor market strengthens support for the Federal Reserve to increase interest rates in December. With all eyes on inflation rates, a shrinking labor pool may drive employers to increase wages leading to a gradual rise in consumer spending.
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