In hurricanes’ wake, US jobless claims hit 4m high

New US claims for jobless benefits unexpectedly rose to their highest level in four months last week as a post-hurricane season uptick persisted, government data showed yesterday. Levels remained low by historical standards, however, and analysts said the numbers did not yet show a clear upward trend.

The report, which was conducted during the survey week for the Labouwr Department’s much more closely watched monthly employment report, also suggested strong job creation was likely to continue in November. With unemployment at its lowest level since 1969, employers have complained over the last year of a worsening labor shortage and have hesitated to dismiss workers who are increasingly difficult to replace -- a situation which has begun to drive up wages but also to eat into profits.

For the week ended November 17, claims rose by 3,000 to a seasonally adjusted 224,000, the highest level since May 19. Analysts had expected a lower reading of only 215,000. A less volatile fourweek moving average also rose by 2,000 claims to 218,500. Back-to-back hurricanes in September and October slammed into the US Atlantic and Gulf coasts, disrupting business for millions and likely driving up claims for unemployment insurance.