08:46 AM EDT, 10/10/2024 (MT Newswires) -- US initial jobless claims jumped to 258,000 in the week ended Oct. 5 from an unrevised 225,000 level in the previous week, well above the expectations for a 230,000 reading in survey of analysts compiled by Bloomberg as of 8:05 am ET and hitting the highest level since the week ended Aug. 5, 2023.

The surge in claims likely reflects some impact from Hurricane Helene that hit the Southeast in the previous week. There were large unadjusted claims increases in Florida, North Carolina and Tennessee.

The four-week moving average increased by 6,750 to 231,000 after decreasing by 750 to a level of 224,250 in the previous week.

Insured jobless claims increased by 42,000 to 1,861,000 in the week ended Sept. 28.

The weekly initial jobless claims data released by the US Labor Department measures filings for unemployment insurance benefits. Initial filings are reported through the previous Saturday, while those already on benefits are measured with a one-week lag.

A decrease in claims suggests a stronger labor market, a positive for the US economy and stocks, but a negative for bonds as it suggests wage growth that could lead to inflation.