Jobless claims, Challenger layoffs and labor costs set stage for October jobs report
SPY•Initial jobless claims fell 3.1% to 189,000, while third-quarter productivity rose 3.6% and unit labor costs fell 0.7%. October layoffs announced by U.S. firms totaled 43,994, and economists expected Friday’s jobs report to show 65,000 jobs added.
1. Labor indicators mixed
Initial jobless claims fell 3.1% from the prior week to 189,000, 7,000 below analyst expectations and the lowest reading since July. Continuing claims rose 1.4% to 1.718 million, 8,000 above consensus.
2. Layoffs and productivity
U.S. firms announced 43,994 layoffs in October, up 2% from September but down 71% from October 2025. Third-quarter productivity rose 3.6%, above the 2.8% consensus, while unit labor costs fell 0.7%, versus economists’ forecast for a 0.6% increase.
3. Jobs report ahead
Economists expected the October employment report to show 65,000 jobs added and an unemployment rate of 4.2%. Market and economic conditions were the leading reason cited for planned headcount reductions; AI accounted for 121,401 announced layoffs so far this year.
