Washington, DC, December 15, 2005--Applications for state unemployment benefits increased by 1,000 to a seasonally adjusted 329,000 in the week ending Dec. 10, the Labor Department reported Thursday.
Initial claims in the previous week were revised 1,000 higher to 328,000.
The four-week moving average of new claims increased by 6,000 to 328,750, the highest in five weeks. The moving average is considered a better gauge of the labor market, since it smoothes out the effects of one-time events such as holidays and weather.
Three devastating hurricanes are still having a small impact on layoffs. In the latest week, an estimated 1,500 claims were due to Hurricanes Katrina and Rita, while 1,000 new claims were filed related to Hurricane Wilma, a Labor Department spokesman said.
Katrina and Rita are associated with a cumulative 570,700 jobless claims, while Wilma-related claims total 31,700, the Labor Department estimated. The hurricane figures are not seasonally adjusted.
The number of workers collecting state unemployment benefits rose by 21,000 to 2.606 million in the week ending Dec. 3. The four-week average of continuing claims fell by about 40,000 to 2.682 million, the lowest since mid-September.
The insured unemployment rate remained at 2%.
Initial claims have now settled in a range between 320,000 and 330,000, since the worst of the hurricane damage, up slightly from the 310,000 to 330,000 range prevailing before the storms.
Jobless claims in this range are consistent with monthly payroll gains of about 150,000 to 250,000, economists say.
In November, payrolls rose by 215,000 after tepid gains totaling 61,000 in September and October. December's payroll survey is taking place during the current week.
