US Jobless Claims -2: Highest Level Since Dec. 14, 2002
06 Mar 08:30
By Joseph Rebello
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The number of U.S. workers filing first-time
applications for unemployment benefits climbed to a two-month-and-a-half month
high last week after a blizzard on the East Coast caused layoffs in
construction and other weather-sensitive industries.
Initial jobless claims rose unexpectedly in the week that ended March 1,
climbing by 12,000 to 430,000, the Labor Department said Thursday. That marked
the third consecutive weekly gain, and it raised the four-week average by
8,750 to a two-month high of 408,750.
"Claims are up, and they're up because of the bad weather," a Labor
Department statistician said. Mid-Atlantic states were hit by the worst
snowstorm in years two weeks ago, causing the federal government to close for a
day and slowing activity in many cities.
Wall Street had expected a moderate decrease in claims. A consensus forecast
of economists surveyed by Dow Jones Newswires and CNBC had called for a decline
of 17,000 claims. The numbers suggested that the labor market, which had shown
some signs of stabilizing in January has begun to weaken again.
Nearly 2 million Americans have lost their jobs over the last two years as
the economy slipped into a recession from which it has barelyrecovered. Weak
economic growth and worries about a war with Iraq have made businesses
reluctant to hire workers. The unemployment rate now stands at 5.7%, but most
economists expect it to be at 6% by the end of the year.
The Labor Department said the number of workers drawing unemployment benefits
for more than a week rose in the week that ended Feb. 22, the latest period for
which the number is available. Continuing claims registered the biggest
increase in three months, climbing by 180,000 to 3,516,000. The unemployment
rate for workers with unemployment insurance rose a tenth of a percentage point
to a three-and-a-half-month high of 2.8%.
Pennsylvania reported the biggest increase in initial claims for the week of
Feb. 22, saying claims rose by 5,891 because of layoffs in such industries as
construction, food, and lumber. Michigan reported the biggest decrease,
attributing a decline of 9,515 calims to fewer layoffs in the automobile
industry.
The Labor Department revised its preliminary estimate of initial claims for
the week of Feb 22, raising it by 1,000 to 418,000. The department routinely
revises its initial estimates.
-By Joseph Rebello; Dow Jones Newswires; 202-862-9279
(END) Dow Jones Newswires
03-06-03 0830ET |
