US Jobless Claims +10K To 455K In Sep 13 Wk; Survey -10K

By Daniel | September 18, 2008

Last Update: 9/18/2008 8:30:00 AM

By Brian Blackstone
Of DOW JONES NEWSWIRES

WASHINGTON (Dow Jones)– The number of U.S. workers filing new claims for
unemployment benefits unexpectedly jumped last week due to the effects of
Hurricane Gustav on jobless claims in Louisiana.

Yet even absent that temporary boost, the trend remains very weak for labor
markets. The four-week moving average of new claims, which aims to smooth
volatility in the data, remained at a level typically associated with recessions
while the four-week average for insured unemployment hit a fresh five-year high.

Initial claims for jobless benefits rose 10,000 on a seasonally-adjusted basis to
455,000 in the week ended Sept. 13, the Labor Department said in its weekly
report Thursday. Economists surveyed by Dow Jones Newswires had expected claims
would fall by 10,000.

A Labor Department analyst said the latest figures are the first to capture the
effects of Gustav on labor markets in Louisiana. The state was unable to report
claims the previous two weeks due to power outages, the analyst explained. “They
came through with a very large number for this week, much larger than what would
be expected” based on usual patterns, the analyst said.

“Absent what (Louisiana) came through with, we probably would have had a
decrease” in seasonally-adjusted claims nationally, the analyst said.

The four-week average of new claims rose 5,000 to 445,000, well above levels
typically consistent with declines in monthly employment. Nonfarm payrolls have
dropped eight-straight months, and the latest claims figures - which include the
survey period for the September employment report - suggest another drop when
this month’s data are released in early October.

The tally of continuing claims, those drawn by workers collecting benefits for
more than one week in the week ended Sept. 6, fell by 55,000 to 3,478,000.
However, the four-week average rose to its highest level since October 2003,
suggesting it is getting even harder for the unemployed to find new work.

The unemployment rate for workers with unemployment insurance was unchanged at
2.6%.

Not adjusted to reflect seasonal fluctuations, Louisiana reported the largest
increase in new claims the week of Sept. 6, 2,251. Texas reported the largest
decrease, 3,255, due to fewer layoffs in service, information and manufacturing
industries.

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