MW: ECONOMIC REPORT: Jobless claims rise 15,000 to 478,000
Trend in continuing unemployment benefits highest in five years
By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) - New applications for state unemployment benefits increased by 15,000 in the week ending Oct. 18 to a seasonally adjusted 478,000, boosted by about 12,000 new claims stemming from Hurricane Ike, the Labor Department reported Thursday.
The four-week average of seasonally adjusted initial jobless claims - which smoothes out one-time events such as holidays or weather - fell by 4,500 to 480,250 from a seven-year high of 484,750 the previous week.
The number of people collecting regular state unemployment benefits fell by 6,000 to a seasonally adjusted 3.72 million in the week ending Oct. 11, while the four-week average of continuing claims rose by 44,250 to 3.68 million, the highest in more than five years.
In addition, in the week ending Oct. 4, 1.1 million people were collecting extended federal benefits available to those who've exhausted the typical 26 weeks of state benefits. That was down by 290,000 from the previous week.
Initial claims represent job destruction, while the level of continuing claims indicates how hard or easy it is for displaced workers to find new jobs.
In the past year, initial jobless claims have risen 47%, while continuing claims are up 44%. The economy has lost jobs for nine consecutive months, and more job losses are expected in October. So far in 2008, nonfarm payrolls have fallen by 760,000 to 137.3 million.
The October employment survey was conducted last week, with the results to be released on Nov. 7. Compared with September's survey week, initial claims are up about 8%, while continuing claims are up about 6%.
Typically, unemployment benefits run out after 26 weeks for those who are eligible. The new law extends unemployment benefits for an extra 13 weeks under the separate federal program.
Benefits are generally available for those who lose their full-time job through no fault of their own. Those who exhaust their unemployment benefits are still counted as unemployed if they are actively looking for work.
