Sandy boosts unemployment claims again
- Unemployment claims rose by 78,000 in the latest week
- The 4-week average rose to 383,750
- Superstorm Sandy may affect claims for another two weeks
WASHINGTON (AP) — Superstorm Sandy drove the number of people seeking unemployment benefits up to a seasonally adjusted 439,000 last week, highest level in 18 months.
The Labor Department said Thursday that weekly applications increased by 78,000 mostly because a large number of applications were filed in states damaged by the storm. People can claim unemployment benefits if their workplaces close and they don't get paid.
Superstorm Sandy has affected unemployment claims the past two weeks and may distort reports for another two weeks, the department has said.
The four-week average of applications, a less volatile number, increased to 383,750.
Sandy hit the East Coast Oct. 29 and disrupted businesses from North Carolina to Maine. The storm also cut power to roughly 8 million homes and businesses. Some are still without power.
Before the storm distorted the figures, weekly applications had fluctuated between 360,000 and 390,000 since January. At the same time, employers have added an average of nearly 157,000 jobs a month. That's barely enough to lower the unemployment rate, which was 7.9 percent in October.
There are some signs that the job market is improving. Employers added 171,000 jobs in October and hiring in August and September was stronger than first estimated. The economy has gained an average of 173,000 jobs a month since July. That's up from an average of 67,000 a month in April through June.
The unemployment rate rose slightly in October from 7.8% in the previous month because more Americans began looking for work. That suggest some felt their chances of finding a job had improved. Not all found jobs, which pushed up the unemployment rate. The government only counts people as unemployed if they are actively searching for work.
The government releases its second estimate for third-quarter economic growth Nov. 29.
Many economists say the economy is growing in the current October-December quarter at a weak annual rate below 2%.