The report is a weekly compilation of the number of individuals who filed for unemployment insurance for the first time. This indicator, and more importantly, its four-week moving average, portends trends in the labor market.
Analysts said September's string of hurricanes was the likely cause of the volatility. The Labor Department said claim levels in Florida, though down in the week, remain high.
Most Wall Street experts had expected claims to rise by 6,000.
The government said the four-week average, offering the best reading on layoff activity, fell 5,500 to 343,250. Though lower, the level remains a disappointment indicating continued soft labor conditions.
Continuing claims, which offer an indication on the success longtime jobseekers are having, rose 38,000 to 2.823 million, a stronger reading than initial claims but still showing little long-term improvement and going in the wrong direction for the Oct. 16 week.
Copyright 2004 by United Press International
