Fewer Americans filed applications for unemployment benefits last week as damage to the labor market caused by Superstorm Sandy began to subside.
Jobless claims decreased by 41,000 to 410,000 in the week ended Nov. 17, the U.S. Labor Department reported today in Washington. The number of applications matched the median forecast of 48 economists.
The level of claims reflects the economic drag associated with Sandy, which made landfall in the Northeast on Oct. 29, killing more than 100 in the U.S. and leaving about eight million homes and businesses without power for days. Before the storm-related surge in unemployment applications, companies limited hiring in the wake of a global economic slowdown and uncertain U.S. fiscal outlook.
The four-week average, a less volatile measure than the weekly figures, rose to 396,250 from 386,750.
Economists’ estimates for claims last week ranged from 365,000 to 500,000. Claims in the previous week were revised to 451,000 from a previously reported 439,000.
The number of people continuing to receive jobless benefits decreased by 30,000 in the week ended Nov. 10 to 3.34 million. The continuing claims figure doesn’t include Americans receiving extended benefits under federal programs.
Those who have exhausted their traditional benefits and are collecting emergency and extended payments rose by almost 62,000 to 2.19 million in the week ended Nov. 3.
Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly payrolls report -- accelerates.
It may be weeks before claims fully subside as workers who lost jobs because of Sandy continue to file. The storm also took a toll on shopping malls and auto showrooms, pushing down retail sales in October.
Sandy posed an additional challenge to companies already affected by the recession in Europe, which has limited export orders, and concerns about the so-called fiscal cliff of $607 billion U.S. of spending cuts and tax increases set to take effect in January unless Congress acts.
