The number of people filing for unemployment benefits declined last week as the impact of hurricanes faded in several states.
Unemployment claims fell by 12,000 from 272,000 to 260,000 last week, according to the Labor Department report released on Thursday.
While the less volatile four-week average claims declined from 277,750 to 268,250 last week. The recovery in Florida, Georgia, and Texas saw a combined 9,000 drop in the total jobless claims last week.
Economists believe the hurricanes will impact non-firm payroll gains for September. The survey showed experts are projecting 80,000 non-farm payroll gains for the month, almost half of August’s increase. The non-farm payroll report is due to be released on Friday.
The impacts of the hurricanes on the labor market are expected to be temporary as the job market generally remains strong.
Unemployment benefits have now been below the 300,000 threshold for 135 consecutive weeks. Making it the longest stretch since 1970.
Overall, continuing unemployment claims have now been below the 2 million level for 25 weeks, indicating continuous job creation in the labor market, even with a sluggish wage growth. Also, the weak inflation rate is supporting consumer spending, the powerhouse of the economy. The Fed is expected to commence balance sheet normalization later this month.
The dollar gained 0.3 percent against the Euro to $1.1717 and 0.9 percent against the Pound to $1.3136 as of 9.26 a.m. New York time. Both regions are facing growing political uncertainties.