Sharp fall in US unemployment claims linked to Hurricane Sandy

http://www.guardian.co.uk/business/2012/nov/08/fall-us-unemployment-claims-hurricane-sandy

Version 0 of 1.

The number of US workers filing for unemployment claims fell sharply last week, although the figure was largely influenced by Hurricane Sandy.

In the first jobs figures to be released after Barack Obama's re-election as president, the labor department reported that initial jobless claims decreased by 8,000 to a seasonally adjusted 355,000 in the week ending 3 November. The weekly figure, the lowest in a month, comes after a better than expected monthly jobs report showed that the US added 171,000 new jobs in October.

But economists warned that Sandy had led to the closure of unemployment offices across the north-east. The four-week moving average of claims, seen as a more accurate guide, increased by 3,250 to 370,500.

"There has been a tendency historically for extreme weather to depress claims initially, with people too preoccupied to file in the week the weather caused job losses," said Jim O'Sullivan, chief US economist for High Frequency Economics, in a note to clients.

The latest jobs figures came as a rebound in exports drove down the US's trade deficit. The US deficit in international trade of goods and services in September was $41.55bn, down 5.1% from $43.79bn the month before, the commerce department said.

The economic news came after a sharp sell-off on Wall Street on Wednesday, the first day of trading following Obama's election. The Dow Jones Industrial Average lost more than 312 points (2.36%) as investors worried about a looming fight over fiscal policy in Washington, given the Republican's hold on the House of Representatives. On Thursday morning, the Dow opened slightly up.