Economic Report

Jobless claims drop to three-week low of 214,000 as Hurricane Ian effects fade

Last Updated: Oct. 20, 2022 at 9:06 a.m. ET
First Published: Oct. 20, 2022 at 8:39 a.m. ET

By Jeffry Bartash

Layoffs in the U.S. still low even as storm clouds gather over economy

The numbers: The number of people who applied for unemployment benefits fell by 12,000 in mid-October to a three-week low of 214,000, as more people who couldn’t work after Hurricane Ian returned to their jobs. ... Economists polled by the Wall Street Journal had forecast new claims to total 230,000 in the seven days ended Oct. 15. The figures are seasonally adjusted.

The number of people applying for jobless benefits is one of the best barometers of whether the economy is getting better or worse. ... New unemployment filings had crept higher in the past month, but they are extremely low and signal the labor market is still tight.

Big picture: The economy is headed for turbulent times, possibly even recession. A majority of economists think a downturn is coming and most CEOs are preparing for one.

The reason? Rapidly rising interest rates. The Federal Reserve has lifted the cost of borrowing to squelch the highest inflation in 40 years, a strategy bound to slow the economy. ... The Fed also wants to cool off a red-hot labor market to prevent wages from rising so fast as to add to inflation. The result is likely to be less hiring, more layoffs and higher unemployment.

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US jobless claims declined by 12,000 to 214,000 from 226,000 last week

Oct 20, 2022, 8:54am • Updated 9m ago
By: Associated Press

The number of Americans applying for unemployment benefits fell last week and remains historically low even as the U.S. economy slows in the midst of decades-high inflation.

Jobless claims for the week ending Oct. 15 declined by 12,000 to 214,000 from 226,000 last week, the Labor Department reported Thursday. ... The four-week moving average rose by 1,250 to 212,250.

Considered a proxy for layoffs, applications for jobless aid have remained historically low since the initial purge of more than 20 million jobs at the start of the coronavirus pandemic in the spring of 2020.

Some recent employment data suggests the job market may be cooling slightly, but overall, it remains the healthiest part of an economy that’s been shaky all year due to high inflation and Russia's war in Ukraine. ... The government reported last week that inflation in the United States accelerated in September, with the cost of housing and other necessities intensifying pressure on families and businesses.

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