Oct

4

US Jobless Claims Rise on Damage Caused by Hurricanes

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Weekly jobless claims in the US remained at the highest levels in seven years as more people from hurricane-affected areas filed for benefits.

On Thursday, the US Department of Labor revealed data that put the number of seasonally adjusted first-time claims for unemployment benefits at 497,000 for the week ending September 27. the latest figures show a rise of 1000 and mark the highest number of claims since late September 2001. the significant increase in the number of jobless claims is being attributed to the devastation caused by Hurricane Gustav in Louisiana and by Hurricane Ike in costal areas of Texas.

Other than first-time jobless claims, the four-week average of claims also rose by 11,500 to 474,000 which marked the highest in the last seven years, since October 2001. the four-week average is a measure of the underlying unemployment trends and is useful in gauging how the economy is doing. Data from the Labor Department further revealed that continuing claims for jobless benefits increased both in the week ending September 20 as well as in the four-week average. While these figures are indicate that payrolls have not yet fallen as fast as in 2001, still the rate of gross hiring might come down in near future in the wake of market tumult and the consequent credit freeze .