The number of Americans filing for unemployment benefits jumped to its highest level in more than two years last week amid a surge in applications in hurricane-ravaged Texas. However, experts say the underlying trend remained consistent with a firming jobs market.
Figures released Thursday by the U.S. Labor Department revealed that initial claims for state unemployment benefits soared by 62,000 to a seasonally-adjusted 298,000 for the week ended Sept. 2, the highest level since April 2015.
The weekly increase was the largest since November 2012. A department official said last week’s data had been impacted by Hurricane Harvey, which devastated parts of Texas, including unprecedented flooding in Houston.
Unadjusted claims for Texas surged 51,637 last week as some people found themselves temporarily unemployed. Claims for Louisiana were also affected by the storm and increased by 258.
Economists had forecast claims rising to 241,000 during the week.
The four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, increased by 13,500 to 250,250 last week suggesting the labour market south of the border continued to strengthen.
