The number of Americans filing for unemployment benefits rose significantly last week, marking the highest level in over a year. This spike was partially due to Hurricane Helene.
Economists also caution that Hurricane Milton, which recently struck home here in Florida, is likely to further disrupt the job market in the short term.
The Labor Department reported that unemployment filings saw a notable increase for the week ending October 5, far exceeding expert predictions.
Sharp rises in unemployment claims were particularly noticeable in North Carolina and Florida—states that were hit hard by Hurricane Helene in late September. Economists expect the storm's effects to continue influencing the numbers over the next few weeks.
Hurricane Helene caused major flooding and storm surges across the Southeast, leading to a tragic loss of life and forcing many people out of their homes. Estimates suggest the storm’s damage will put significant strain on the private insurance market in the U.S.
Bill Adams, chief economist at Comerica Bank, predicts that unemployment claims will continue to rise in the coming weeks due to the damage from Hurricane Milton.
Although specific economic data on Milton’s impact is still forthcoming, reports indicate that a large portion of Florida’s power customers were without electricity as of Thursday morning. Given Florida's important role in the U.S. economy, this disruption is expected to have a broad impact.
Adams also explained that after severe weather, employment, retail sales, and industrial production often decline initially, but tend to bounce back once recovery efforts begin. This makes it hard to determine whether the economy is experiencing real change in October and November or if the storms are temporarily distorting the data.
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