By Jeffry Bartash
WASHINGTON (MarketWatch) - The number of new applications for U.S. unemployment benefits fell by 15,000 to 358,000 in the second week of October, but the elevated level of initial claims continued to reflect processing delays in California, the Labor Department said Thursday. Economists surveyed by MarketWatch had expected claims in the week ended Oct. 12 to drop to 335,000 from a slightly revised 373,000. The 368,000 claims figure does not include furloughed government employees, who can seek temporary benefits under a separate program. Jobless claims surged to a six-month high two weeks ago because of California's computer-system problems and private-sector layoffs at companies that rely heavily on government contracts. The average of new claims over the past month, usually a more reliable gauge than the weekly number, rose by 11,750 to 336,500. That's the highest level since late July. Meanwhile, the government said continuing claims declined by 43,000 to a seasonally adjusted 2.86 million in the week ended Oct 5. Continuing claims reflect the number of people already receiving benefits.
