US initial jobless claims drop, suggesting a stable employment market

The US Department of Labor announced on Thursday that the number of people filing for unemployment benefits for the first time decreased by 4,000 to 217,000 in the week ending November 9th after seasonal adjustments, compared to market expectations of 223,000. This decline suggests that the US job market continues to remain steady and that the sudden slowdown in job growth in October was an anomaly. The number of people applying for unemployment relief surged at the beginning of October due to impacts from Hurricanes "Helen" and "Milton", as well as strikes at Boeing factories. However, layoffs still remain at historically low levels which supports the economy. Lou Crandall, chief analyst at Wrightson ICAP said: “Although many employment-related indicators show that this year's labor market has significantly softened, these changes have not yet affected unemployment insurance data.” Although areas severely hit by Hurricane Helen may take some time to recover, economists are optimistic that with end of Boeing’s strike action in November will reinvigorate job growth allowing this aircraft manufacturer to cancel rotating furloughs implemented as a cash-saving measure.