U.S. jobless claims surged last week by the most since November 2012 as tens of thousands of Texans displaced by Hurricane Harvey filed applications to collect benefits, according to Labor Department figures Sept. 7.
Highlights of Jobless Claims for the Week Ended Sept. 2
• Initial jobless claims increased by 62,000 to seasonally adjusted 298,000 (est. 245,000).
• Applications filed in Texas surged by an unadjusted 51,637 from the previous week to 63,742.
• Continuing claims in U.S. fell by 5,000 to 1.94 million in week ended Aug. 26 (data reported with one-week lag).
The jump in claims was the biggest since superstorm Sandy slammed into the Northeast and pushed the overall level of filings to the highest level since April 2015.
The results are among the first to show that Harvey, which made landfall on Aug. 25 along the Gulf Coast in Texas, will cause swings in broader economic data. Employment may be depressed initially until rebuilding and recovery efforts in flooded areas around Houston take hold.
Prior to the storm, the claims figures had been consistent with an improving labor market picture. A shortage of qualified workers is making companies reluctant to dismiss employees, which has kept the underlying trend in applications for unemployment benefits near the lowest level in more than four decades.
Recent reports on manufacturing and services highlighted solid demand for labor, helping underpin consumer spending, the biggest part of the economy.
• Four-week average of initial claims, a less-volatile measure than the weekly figure, rose to 250,250 from 236,750.
• Unemployment rate among people eligible for benefits held at 1.4%, where it’s been since the week ended April 1.
• Claims were estimated for California, Hawaii, Kansas, Virginia and Wyoming last week.
With assistance by Chris Middleton