Source:  WSJ.com

The number of U.S. workers filing new claims for unemployment benefits climbed back up toward the half-million mark last week, a government report showed, suggesting severe weakness in labor markets.

Initial claims for jobless benefits unexpectedly spiked 15,000 on a seasonally-adjusted basis to 478,000 in the week ended Oct. 18, the Labor Department said in its weekly report Thursday. Economists surveyed by Dow Jones Newswires had expected claims would rise by only 2,000.

According to the Labor Department, Hurricane Ike added roughly 12,000 unadjusted claims in Texas last week, the same effect as the previous week.

The four-week average of new claims, which attempts to smooth out volatility, fell for the first time in seven weeks, by 4,500 to 480,250. Still, that remains well above recessionary levels typically consistent with declines in monthly employment.

Full Story: WSJ.com

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