Jobless Claims Soar After Superstorm Sandy

reminiscences of a stock operator pdf

Jobless Claims Soar After Superstorm Sandy

Last week, jobless claims dropped after they surged in the wake of Hurricane Sandy. For the week ending Nov. 17, approximately 410,000 people filed for unemployment benefits for the first time. That’s 41,000 fewer than the number of those who filed the week before. Those numbers come from the Labor Department.

However, the department later revised the data for the week ending Nov. 10, which resulted in a 90,000 claim spike. The largest majority of those claims were from states affected by Hurricane Sandy, including Pennsylvania, New York, Connecticut, and New Jersey. According to a spokesperson from the Labor Department, most of those claims were due to the super storm. The agency also reports that the sudden increase was the largest in just one week since 2005 after Hurricane Katrina.

Hurricane Sandy hit the east coast in late October and knocked out power for hundreds of thousands of people. That caused a delay in residents of the area being able to file for unemployment. It also caused many companies to temporarily lay off their employees, because the storm forced them to close their doors temporarily.

At this point, analysts believe it could take a few more weeks before jobless claims settle back to the level they were at in the weeks before Sandy hit. On average, the states affected by the super storm filed approximately 367,000 first-time unemployment claims each week.

Analysts from Deutsche Bank point out that it took about two weeks for jobless claims to reach their peak after Hurricane Katrina, and they say that it looks like Sandy’s jobless claims may peak after just one week. However, they also expect that jobless claims will remain near 400,000 over the next couple of weeks. Deutsche Bank analysts also say they expect rebuilding efforts from Sandy’s aftermath to improve unemployment, at least through the second quarter of 2013.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at [email protected]

Be the first to comment on "Jobless Claims Soar After Superstorm Sandy"

Leave a comment