8 September 2005, 17:04  U.S. weekly initial jobless claims fall to 319,000

First-time claims for state unemployment benefits fell by 1,000 to 319,000 last week, the Labor Department estimated Thursday. The four-week average of new claims rose by 2,000 to 318,500, the highest in seven weeks. The figures include about 10,000 claims related to Hurricane Katrina, a Labor Department spokesman said, adding that upward revisions to last week's data are possible. Louisiana, Mississippi and Alabama state officials were able to report their data last week, but many of their offices were closed by the storm, making it impossible for some people to file claims, the spokesman said, without providing any details. Neighboring states that took in refugees also reported a number of Katrina-related jobless claims, the spokesman said without providing any details. It's typical for those who lose jobs in natural disasters to wait two or three weeks or even longer before filing for unemployment benefits as they take care of more immediate needs. The metro areas hit hardest by the hurricane had more than 1 million jobs in July. The Labor Department will conduct its monthly employment surveys next week, with the data compromised by the utter destruction of both businesses and households in the region. The September employment data will be reported on Oct. 7. The Congressional Budget Office estimated Wednesday that the storm could reduce employment by about 400,000 in the near-term, while September nonfarm payrolls could be reduced by 500,000 to 1 million by the storm, the CBO said. Meanwhile, the number of people continuing to receive unemployment benefits fell by 5,000 to 2.593 million in the week ending Aug. 27. The insured unemployment rate - the percentage of those eligible for benefits who are receiving benefits - remained at 2%.

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