Jobless Claims Surge on California, U.S. Federal Shutdown

[marmar]

(Bloomberg) More Americans than projected filed applications for unemployment benefits last week as California worked through a backlog caused by a switch in computer systems and the partial federal shutdown forced some government contractors to pare staff.

Jobless claims surged by 66,000, the most since the aftermath of Superstorm Sandy in November, to 374,000 in the week ended Oct. 5, figures from the Labor Department showed today in Washington. The level exceeded all forecasts of 47 economists surveyed by Bloomberg.

The issues in California accounted for about half the jump in applications last week and the dismissal of non-federal employees after Congress failed to compromise on a budget accounted for about another 15,000, a Labor Department spokesman said as the data was released to the press. The effects of the gridlock in Washington may keep claims elevated as employers grow concerned about the economic outlook.

“Claims are likely to be distorted for some time,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida. “Private firms are stepping back. Given all the uncertainty, they are unlikely to hire.” ............(more)

The complete piece is at: http://www.bloomberg.com/news/2013-10-10/jobless-claims-surge-on-california-switch-u-s-federal-shutdown.html