Initial Jobless Claims Rise to 497k

Initial claims for unemployment benefits in the United States rose to 497k in the week ending Sept. 27, the Department of Labor reported on Thursday. Continuing claims rose to 3.591 million for the week ending Sept. 20.

Initial jobless claims were expected to drop to 475k following the previous week's upwardly revised reading of 496k, which was the highest level reported since Sept. 2001.

This week's figure is still above the four-week moving average for initial claims, which is now 474k, up from 462k last week.

The BLS said claims were elevated by 45k due to Hurricanes Ike and Gustav.

Continuing claims were expected to come in at 3.550 million for the week ending Sept. 20, following the previous week's upwardly revised figure of 3.543 million.

Continuing claims have been above the 3 million mark for 21 consecutive weeks. The four-week moving average is now 3.529 million, up from the moving average of 3.482 million in the previous week.

Claims have recently been higher than normal following new rules introduced by the Department of Labor that made filing for unemployment benefits easier, as well as effects from recent hurricanes.

By Patrick McGee and edited by Stephen Huebl
©CEP News Ltd. 2008