Jobless claims fall, still high due to Sandy

WASHINGTON Wed Nov 21, 2012 8:52am EST

Job seekers stand in line to meet with prospective employers at a career fair in New York City, October 24, 2012. REUTERS/Mike Segar

Job seekers stand in line to meet with prospective employers at a career fair in New York City, October 24, 2012.

Credit: Reuters/Mike Segar

WASHINGTON (Reuters) - The number of Americans filing new claims for jobless benefits fell last week but remained elevated due to superstorm Sandy, a sign the storm is proving to be a substantial disruption to the labor market.

Initial claims for state unemployment benefits dropped 41,000 to a seasonally adjusted 410,000, the Labor Department said on Wednesday. That was smack in line with the median forecast in a Reuters poll.

The drop in claims only partially unwinds the 90,000-claim increase registered the prior week. The Labor Department revised upward its estimate for new claims in the week ending Nov 10 to 451,000.

An analyst from the department said several states were still reporting an increase in claims due to Sandy, a mammoth storm that slammed into the East Coast on October 29.

The storm left millions of homes and businesses without electricity, shut down public transportation and led many factories in the Mid-Atlantic and Northeast to curtail production. Retail sales fell as Sandy slammed the brakes on automobile purchases last month.

However, the economic impact of the storm is likely to be temporary.

The four-week moving average for jobless claims, which smoothes out volatility, rose 9,500 to 396,250. Economists generally think a reading below 400,000 points to an increase in employment.

Continuing claims for jobless benefits dropped 30,000 in the week ended November 10 to a seasonally adjusted 3.337 million, the Labor Department said.

(Reporting by Jason Lange; Editing by Andrea Ricci)

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Comments (1)
bobber1956 wrote:
BS it is because of obama not Sandy. It will be 15%+ buy March.

Nov 21, 2012 9:22am EST  --  Report as abuse
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