US jobless claims fall against expectations

Initial claims for US unemployment benefits declined, but are still high amid the impact of Hurricane Milton that hit Florida weeks after Hurricane Helene.

The claims decreased by 19,000 to 241,000, during the week ended on Oct. 2, against expectations of a rise to 260,000, the Labor Department data showed.

Last week's data for jobless claims – which reached their highest level in more than a year – was revised upwards by 2,000 claims to 260,000.

The four-week average of claims, which evens out some of that weekly volatility, rose by 4,750 to 236,250, compared with the previous week's unadjusted average of 231,500.

This was boosted by Hurricane Helene and the sharp rise in jobless claims in Florida and North Carolina. Economists expect the full impact of the storm to extend over several weeks.