Jobless claims in U.S. fall as storm starts to affect data
APPLICATIONS FOR unemployment benefits fell by 8,000 for the week ended Nov. 3 as the effects of Hurricane Sandy are seen.
BLOOMBERG FILE PHOTO/JEFF KOWALSKY
By Alex Kowalski and Michelle Jamrisko Bloomberg News
WASHINGTON - Fewer Americans than forecast filed claims for unemployment insurance last week as the effects of Hurricane Sandy started to show up.
Applications for jobless benefits fell by 8,000 to 355,000 in the week ended Nov. 3, the Labor Department said today in Washington. One state said the loss of electricity due to the storm suppressed filings, while others said workers who lost their jobs as a result of the weather were starting to apply, a Labor Department spokesman said as the data were released to the press.
It may take three to four weeks to see the full impact, the spokesman said, which indicates claims may jump back in coming weeks as more storm-related applications begin to be processed. A Labor Department report last week showed the economy added more jobs than projected in October and the unemployment rate rose as hundreds of thousands of Americans rejoined the job search as prospects improved.
“Over the next few weeks, the number will probably rebound as people re-file the claims they were unable to file,” Ryan Wang, an economist at HSBC Securities USA Inc. in New York, said before the report. “The labor market looks like it’s improved a bit recently.”
Economists forecast claims would be little changed from the prior week at 365,000, according to the median estimate in a Bloomberg survey. Projections ranged from 335,000 to 450,000 in the survey of 51 economists. The prior week’s reading was unrevised at 363,000.
The trade deficit in the U.S. unexpectedly shrank in September as exports rose, Commerce Department figures also showed today. The gap fell to $41.5 billion, the smallest since December 2010.
Sandy struck the U.S. and Caribbean last week, killing at least 177 people, according to the Associated Press . The storm hit New York and New Jersey as it came ashore Oct. 29. About 8.5 million homes and businesses were without power at its peak and may have caused as much as $20 billion in insured damage, according to Hiscox Ltd., the biggest Lloyd’s of London insurer by market value.
Economists at Goldman Sachs Group Inc. in New York project hurricane-related claims will rise by about 14,000 in the week ended Nov. 17, according to a report issued this week. It may take until late December before that distortion is unraveled, they said.
A less-volatile measure of claims, the four-week moving average, rose to 370,500 from 367,250, today’s report showed.
The number of people continuing to collect jobless benefits dropped by 135,000 to 3.13 million in the week ended Oct. 27, the fewest in four years. The continuing claims figure does not include the number of workers receiving extended benefits under federal programs.
Those who’ve used up their traditional benefits and are now collecting emergency and extended payments increased by about 20,000 to 2.15 million in the week ended Oct. 20.
The unemployment rate among people eligible for benefits fell to 2.4 percent in the week ended Oct. 27. Twenty-seven states and territories reported an increase in claims, while 26 reported a decrease.
Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates.
Last week’s payroll report wasn’t affected by Hurricane Sandy. Businesses in the U.S. hired 184,000 workers in October, the most since February, indicating they see enough demand to expand even in the face of the tax increases and spending cuts slated for next year.