US weekly jobless claims at 57-year lows; worker productivity surges in third quarter
SPY•Initial jobless claims fell 6,000 to 189,000 in the week ended October 31, matching a 57-year low, while continuing claims rose 23,000 to 1.718 million. Third-quarter productivity grew at a 3.6% annualized rate, and unit labor costs fell 0.7%.
1. Claims remain low
Initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 189,000 for the week ended October 31, matching the level reached in mid-July, the lowest since 1969. Continuing claims increased 23,000 to 1.718 million in the week ended October 24. Employers announced 43,994 job cuts in October, while hiring plans totaled 444,692, mostly likely for seasonal work.
2. Productivity rises
Nonfarm productivity increased at a 3.6% annualized rate in the third quarter, following an upwardly revised 2.1% rate in the second quarter. Unit labor costs fell at a 0.7% rate, their first decline since the second quarter of 2025; economists had forecast a 0.6% increase.
3. Fed and jobs outlook
Economists polled by Reuters forecast October payrolls would increase by 65,000 and the unemployment rate would remain at 4.2%. The Federal Reserve left its benchmark rate in the 3.75%-4.00% range last week, saying inflation remained elevated.
