The number of Americans filing for unemployment benefits jumped significantly last week, the Labor Department reported Thursday, as claims surged by 33,000 to 258,000 in the week ending October 5.
This marks the highest level of new claims since early August, signaling potential softening in the labor market. Claims were likely boosted by the effects of hurricane Helene.
Economists had anticipated a more modest increase of 5,000, with new claims expected to reach just 230,000.
The four-week moving average, which smooths out week-to-week volatility, rose by 6,750 to 231,000. Meanwhile, the number of Americans continuing to collect jobless benefits for the week ending September 28 climbed by 42,000 to 1.86 million, underscoring a rise in ongoing unemployment.
On an unadjusted basis, initial claims surged by 53,570 to 234,780. This marks the first time in nine weeks that unadjusted claims exceeded 200,000, adding to concerns about the strength of the U.S. labor market.
