Jobless Claims Surge but Labor Market Remains Steady

U.S. unemployment benefits applications rose sharply, the highest in nearly 4-1/2 years, but economists suggest it does not indicate a weakening labor market due to seasonal volatility. The four-week moving average remains stable, despite employment concerns amid a strong economy shown by a narrowed trade deficit.

Last week, the rise in U.S. unemployment benefit applications marked the largest increase in nearly 4-1/2 years. Despite this, experts say it doesn't reflect a weakened job market, citing seasonal data volatility as a factor.

Economists emphasize the importance of the four-week moving average for a clearer labor market overview. The moving average suggests stability, even though recent layoff notices from big firms haven't led to increased unemployment claims.

In the face of labor market uncertainties, the economy shows strength with a contracting trade deficit. This is highlighted by a separate report noting a significant drop in the September trade deficit, driven by increased exports and only slight import growth.

(With inputs from agencies.)