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Hurricane Gustav pushes U.S. weekly jobless claims higher

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Right now, the United States is dealing with the effects of storms -- financial and otherwise.

That was how one economist characterized this week's unemployment report, in which U.S. jobless claims jumped 10,000 to 455,000 for the week ended September 13, the U.S. Labor Department announced Thursday. Claims for the previous week were unrevised at 445,000.

However, the Labor Department cautioned that this week's report was skewed higher by claims filed by residents of Louisiana who were laid-off following Hurricane Gustav.

Economists surveyed by Bloomberg News had expected this week's initial jobless claims to total 440,000.

Also, the 4-week moving average increased 5,000 to 445,000. Economists view the 4-week average as a better indicator of unemployment conditions, as it smooths-out anomalies for strikes, holidays, or other idiosyncratic events.

Economist Peter Dawson said "job loss statistics continue to reveal a U.S. economy that's on the verge of recession or already in one."

"Given, the recent corporate bankruptcies and banking mergers, unemployment levels are expected to rise, both directly from job lay-offs from these firms, and from the decreased business their partners and clients will experience," Dawson said. "Also, with companies becoming more conservative with operations, it's going to become increasing difficult for these workers to find comparable employment in a normal period of time, something public policy leaders need to keep sight of."


The largest increases in initial claims for the week ending September 6 were in: Louisiana,+2,251, Wisconsin, +1,510, North Carolina, +1,234, Kansas, +798, and South Carolina, +698. The largest decreases were in: Texas, -3,255, California, -3,238, New York, -3,238, Ohio, -2,321, and Missouri, -2,163.

Meanwhile, continuing claims remain at a high level, but dipped during the latest data file week. The number of continuing claims decreased 55,000 to 3.478 million from a revised 3.533 million for the week ended September 6, the latest period for which figures were available.

Economic Analysis: A generally poor weekly jobless report, but one skewed by Hurricane Gustav. Also, the 4-week moving average continues to rise and is at an elevated level. True, the continuing claims total dipped to 3.478 million, but it's still high - - an indication of the difficultly U.S. adults are having trying to secure new employment. That statistic, combined with an elevated 4-week average, indicates that labor market conditions remain soft - - a decided negative for the U.S. economy. Economist Dawson added that so long as the unemployment rate continues to rise, it's virtually impossible for corporate earnings to increase at healthy rates.
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Last updated: November 25, 2009: 06:15 AM

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