Jobless Claims: Sharp Jump In Wake of Hurricane

Bottom Line: Large jumps in jobless claims in North Carolina and South Carolina in the wake of Hurricane Florence drove total jobless claims sharply higher last week, more than expected. Kentucky also saw a sharp increase as the storm moved inland dumping large amounts of rain and causing flooding. While we'd expect more volatility and the local situations can be devastating to families, this will do little to change the national trend. The 4-week average is at 206k, below the 13-week average that is now 213k, indicating the labor market trends are still improving modestly. Jobless Claims ROSE by 12k during the week ended September 22nd, 214k, compared with market expectations for an increase to 210k.The 4-week average ROSE by 0.3k to 206k and the 13 week average FELL by 1.1k to 213k. Continuing Claims ROSE by 16k during the week ended September 15th to 1,661k, after the prior week was revised slightly higher from 1,645k to 1,700k.The 4-week average FELL by 12k to 1,679k. On a non-seasonally adjusted basis, Continuing Claims FELL by 52k to 1,409k during the week ended September 8th. The Insured Jobless Rate STAYED at 1.2% during the week ended September 15th. The insured jobless rate only reflects the number of people collecting regular state unemployment insurance.