Jobless claims rise on hurricane impact
Thursday, September 2, 2004 12:47:54 PM
WASHINGTON (AFX) - First-time claims for state unemployment benefits rose sharply in the latest week, in part due to the continued impact of Hurricane Charlie, the Labor Department reported Thursday. The number of initial claims in the week ending August 28 rose 19,000 to 362,000
It's the highest level since the week ended April 10
The consensus forecast of Wall Street economists was for claims to fall to 340,000. A Labor Department spokesman said a portion of the increase in claims was a result of Hurricane Charlie. The spokesman said the hurricane accounted for a "little less than half" the increase in the latest week
Over the past two weeks, claims have spiked up by 29,000 - with about half the increase attributed to the impact of the hurricane, which battered Florida and the Southeast on Aug. 13 and 14
The more reliable four-week average of initial claims rose 6,250 to 343,000. This is the highest level since the week ended July 31
Economists put more weight on the four-week average as a guide to the strength of the labor market because it smoothes out one-time distortions, such as weather events
Meanwhile, the number of Americans receiving state jobless benefits fell 5,000 to 2.882 million in the week ending August 21. This is the lowest level since the week ended July 10. The four-week moving average of continuing claims fell 4,750 to 2.89 million
The insured unemployment rate remained at 2.3 percent
The figures come a day before the Labor Department issues its monthly employment report for August. Economists are expected a report that is neither very strong nor very weak. They are forecasting a modest 158,000 increase in nonfarm payrolls after disappointing gains in June and July
In a separate report, the Labor Department revised Q2 nonfarm labor productivity lower to an increase of 2.5 percent
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