Initial Jobless Claims Fall But Benefit Rolls Rise

Washington, DC, Oct. 16, 2008--Initial jobless claims in the U.S. fell last week as job losses related to the Gulf Coast hurricanes subsided, while total benefit rolls rose to the highest level in five years.

Initial jobless claims declined by 16,000 to 461,000 in the week that ended Oct. 11, fewer than forecast, from a revised 477,000 the prior week, the Labor Department said today in Washington. Some state offices were closed during the Columbus Day holiday last week, prompting the government to estimate claims in eight states, a Labor spokesman said.

The four-week moving average of initial claims, a less volatile measure, rose to 483,250, the highest since the 2001 recession, from 482,500. So far this year, weekly claims have averaged 392,000, compared with an average 321,000 for all of 2007.

The number of people continuing to collect jobless benefits climbed to 3.711 million in the week ended Oct. 4, the most since June 2003, from 3.671 million the prior week.

Forty-two states and territories reported an increase in new claims, while 11 reported a decrease.