–Still No Hurricane Impact Moving National Numbers

By Denny Gulino and Ian McKendry

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits rose 11,000 to a level of 428,000, beyond what was expected
after seasonal adjustment in the Sept. 10 week with an offsetting move
expected for this week, the Labor Department reported Thursday.

Economists surveyed by Market News International had expected
initial claims to come in at 415,000, just slightly above the originally
reported level for the previous week of 414,000. That week has been
revised up to 417,000.

The week’s bounce, which took the level of claims to its highest
since the June 25 week, was not necessarily reflecting any economic
influence. A Labor Department analyst said the seasonal factors took the
latest week higher having gotten less of an actual decline, 6.5%, than
they anticipated for a week including a holiday. The holiday normally
depresses claims. Next week’s seasonal factors, however, anticipate a
perfect offset to the 9.0% decline expected this time, an 8.9%
increase.

There was no indication this time of a lot of Hurricane Irene
claims, as was also the case the previous week, and there’s no sign the
weather is moving the national numbers, the analyst said. No states were
estimated.

The initial claims seasonally adjusted 4-week moving average was
419,500 in the September 10 week, up 4,000 from the previous week’s
revised average.

The state data released for the Aug. 27 week showed the highest
insured unemployment rates were in Puerto Rico, at 4.4%, Pennsylvania,
at 4.2%, New Jersey, at 4.0% and California and Connecticut, both at
3.7%. Nationally the insured unemployment rate remained at 3.0%,
compared to 3.5% a year earlier.

In the Sept. 3 week, continuing claims fell 12,000 to 3,726,000
after adjustment, the lowest level since the July 30 week when they were
3,695,000. Unadjusted continuing claims fell by 167,359 to 3,267,684.

The unemployment rate among the insured labor force is well below
that reported monthly by the Labor Department because claims are
approved for the most part only for job losers, not the job leavers and
labor force reentrants included in the monthly report.

The Labor Department said that the level of unadjusted Emergency
Unemployment Compensation benefits claims rose by 6,049 in the
August 27 week, bringing that category to 3,066,671. Extended benefits
claims rose 4,152 to 541,044, not seasonally adjusted in the same
week. The Labor analyst said he would consider those totals essentially
unchanged.

The Labor Department reported that a total of 7,144,143 persons
claimed unemployment benefits in the August 27 week, a decline of
25,033 from the previous week, but still well below the 9,209,574
persons in the comparable week a year ago. These data are not seasonally
adjusted, and include regular state claims, federal employee claims, new
veterans claims, the EUC and extended benefits programs, state
additional benefits, and STC/Workshare claims.

** Market News International Washington Bureau: 202-371-2121 **

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