–Verizon Strike Added 8,500 NSA Claims This Week, 12,500 In Aug 13 Week
–Continuing Claims Fall 80,000 To 3.641 Million, Low Since Sept. 2008

By Kevin Kastner and Ian McKendry

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits rose 5,000 to a level of 417,000 after seasonal adjustment in
the August 20 week, the Labor Department reported Thursday.

Economists surveyed by Market News International had expected
initial claims to come in at 405,000, down 3,000 from the initially
reported level of 408,000 in the August 13 week. The previous week’s
claims were revised up to a level of 412,000.

There were a special note included in the report this week
regarding the impact of the labor dispute with Verizon workers. It reads
as follows:

“Special Factor: As a result of a labor dispute between
Communication Workers of America and Verizon Communication, at least
12,500 initial claims were filed in the week of 8/13/2011 and at least
8,500 initial claims were filed in the week ending 8/20/2011.”

A Labor Department analyst noted that these claims are not
seasonally adjusted.

The initial claims seasonally adjusted 4-week moving average was
407,500 in the August 20 week, up 4,000 from the previous week.

The Labor Department analyst said seasonal factors had expected a
decline of 2.5%, or about 8,600 unadjusted claims in the current week.
Claims actually fell only 1.3%, or 4,536 to 341,436 in the current week.
Unadjusted claims were at a level of 384,955 in the comparable week a
year earlier.

The state data released for the August 13 week indicated unadjusted
initial claims increased in 19 states and declined in 34 states. The
District of Columbia, Puerto Rico, and Virgin Islands are included in
this data.

In the August 13 week, continuing claims fell 80,000 to 3,641,000
after adjustment, while unadjusted continuing claims fell by 101,224 to
3,452,004. The adjusted continuing claims level was the lowest since the
September 20, 2008 week, when it was 3,564,000.

The seasonally adjusted insured unemployment rate fell to 2.9% from
3.0% in the prior week. The current rate is well below the 3.5% rate in
the comparable week a year earlier.

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 fell 43,827 in the August 6
week, bringing that category to 3,086,781. Extended benefits claims rose
23,413 to 550,903, not seasonally adjusted in the same week.

The Labor Department reported that a total of 7,290,189 persons
claimed unemployment benefits in the August 6 week, a decrease of 45,989
from the previous week, and still well below the 10,156,946 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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