WASHINGTON – The number of people who have lost jobs due to the hurricanes rose to 599,700 last week as the effects of Katrina and Rita continued to be felt months after they slammed ashore.
The Labor Department attributed 7,000 claims last week to Katrina, which struck near New Orleans Aug. 29, and Rita, which hit near the Texas-Louisiana border Sept. 24. Wilma, which hit Florida Oct. 24, resulted in an additional 700 claims last week.
The total of 7,700 storm-related claims was the lowest weekly figure since the government began tracking the hurricanes’ impact on the labor market in the first week of September. Total claims for unemployment benefits increased by 6,000 last week to 327,000, a figure seen as indicating a healthy labor market.
The figure for total jobless claims was slightly higher than the 318,000 analysts had been expecting. The figure still was viewed as consistent with their belief that the labor market remains healthy as the economy grows at a solid pace.
The four-week moving average for claims, which smoothes out the weekly volatility, edged down slightly to 322,500 last week, a level that Michele Girard, an economist at RBS Greenwich Capital, said “points to continued healthy underlying labor market conditions.”
On Wall Street, stocks extended their losses for a second day. The Dow Jones industrial average fell 55.79 points to close at 10,755.12.
Part of last week’s overall increase of 6,000 jobless claims was attributed to additional workers filing for benefits after the Thanksgiving holidays, when unemployment claims offices were on a short work week.
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