Initial Jobless Claims Hit Post 9/11 High

Washington, DC, Sept. 25, 2008--Initial jobless claims increased 32,000 to 493,000 in the week ended Sept. 20, reaching its highest level since September 2001, according to the Labor Department.

Excepting that month and an anomalous spike that occurred in July 1992, claims are now at their highest since March 1991. Hurricane Gustav was blamed for the latest rise, with the Department of Labor saying that claims would have been 430,000 if not for hurricane-related claims.

Claims had trended around 370,000 per week until the end of July, which means that recent levels of about 450,000 per week represent a marked change. If the Oct. 3 jobs report is weak enough, the Fed could use the report as justification for an inter-meeting interest rate cut.

Continuing claims increased 63,000 to 3.542 million, reaching its highest level since the week ended Oct. 3, 2003.