Initial jobless claims for the week ending October 15 decreased by 12,000 to 214,000 (consensus 233,000). The low level of initial claims is somewhat remarkable given the seeming lack of claims in the wake of Hurricane Ian. Continuing jobless claims for the week ending October 8 increased by 21,000 to 1.385 million.
The key takeaway from the report is that it covers the week in which the survey for the October employment report was conducted. The low level of initial claims will feed expectations for another solid increase in nonfarm payrolls. In turn, it will drive a belief that the Fed is going to stay aggressive with its rate hikes.