US unemployment rate likely to reach 5.0% in October

In U.S., the jobless claims were forecasted to reach 263K in consensus, while the previous figure for Septmber was 260K, shy below the current forecast. However the US October jobless claims came at 276k, wa ahead of the consensus expectations.

From historical perspective, this remains as low, the continuing unemployment claims went up to 2.163 mn, it was 2.146mn previously. However the insured unemployment rate stood steady at 1.6%.

This week's Labor department reports has no special factors, historical volatality and modest uptick in the claims are both in line. The seperations data continues to point out solid labor maket conditions with previous and continuing unemployment claims, whch are around decade's lows.

"We look for non-farm payroll gains of 175k and an unemployment rate of 5.0% in October employment report", estimates Barclays.