US sees weekly jobless claims drop unexpectedly

The number of Americans filing new claims for unemployment benefits fell unexpectedly last week, but may remain high in the short term amid the effects of hurricanes Helene and Milton, clouding the job market picture.

The US unemployment rate fell to 4.1% in September from 4.2% in August. However, it is still above the 3.8% recorded a year ago.

Initial jobless claims fell by 19,000 last week to a seasonally adjusted 241,000 in the week ending Oct. 12, the Labor Department reported last week.

Economists consulted by Reuters predicted 260,000 applications for the last week. Requests jumped to a more than one-year high the previous week, attributed to Hurricane Helene, which devastated Florida and large areas of the southeastern US in late September. Weeks later, Hurricane Milton hit Florida.

The month-long strike by about 33,000 Boeing employees, which has taken its toll on the planemaker’s supply chain as well as its non-striking workforce, is also clouding the outlook for the job market. Boeing had been facing a series of problems before its West Coast union workers struck, and last week it announced 17,000 staff cuts. People eligible to receive unemployment insurance money will receive a weekly benefit worth approximately 50% of their average weekly wages, up to the maximum amount allowed by law.