Unemployment Claims Rise Amid Hurricanes and Strikes

Unemployment claims rose slightly, indicating no major labor market changes. Hurricanes and strikes, especially at Boeing, affected job growth. Unit labor costs surged, influencing inflation concerns and Federal Reserve interest rate decisions. Economists predict job growth rebounding post-disruptions.

The number of Americans filing new applications for unemployment benefits rose slightly last week, signaling a minimal shift in the labor market. Hurricanes and strikes, notably affecting the aerospace giant Boeing, nearly stalled job growth in October, experts report.

Despite a cooling labor market, wage inflation remains stubborn, posing challenges for the Federal Reserve's inflation and interest rate strategies. Third-quarter data showed a significant rise in unit labor costs, sparking concerns among economists and the central bank over inflation stability. Interest rates are expected to be cut soon.

Although employment growth was sluggish in October, forecasts project a robust rebound in November, as disruptions from weather events subside, and striking workers return. Unit labor costs, a key determinant of service pricing, continue to pressure inflation indicators, complicating the Fed's policy approach.

(With inputs from agencies.)