Labor Dept.: Weekly Jobless Claims Fall by 9K

Weekly applications for unemployment benefits dropped 9,000 to a seasonally adjusted 363,000 last week, the Labor Department announced Thursday,

The report comes just before Friday's October jobs data, the last broad snapshot of the economy before the presidential election Tuesday. The still-weak job market has been a top issue for voters during the campaign.

The Labor Department said Thursday that the four-week average of claims, a less volatile measure, declined to 367,250. The average has been around that level for three months.

A department spokesman said Hurricane Sandy had no effect on the number of applicants. The report covered the week ending Oct. 27, before the storm reached shore.

But the devastation and economic disruptions that the storm caused this week will likely increase applications for unemployment aid in coming weeks. Workers who have been temporarily laid off because of the storm are expected to seek benefits.

Applications have fluctuated between 360,000 and 390,000 since January. During that time, employers have added an average of about 150,000 (mostly part-time) jobs a month. That's reduced the unemployment rate from 8.3 percent in January to 7.8 percent in September.

Economic growth rose to a 2 percent annual rate in the July-September quarter, up from 1.3 percent in the April-June quarter. Some of the growth is due to an increase in consumer spending, but most of it can be attributed to a sharp uptick in federal spending.

Bottom Line: The economy is growing too slowly to rapidly bring relief to America’s unemployed. With the unemployment rate still high, steady growth of more than 3 percent is generally needed to create a sufficient number of jobs.

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The Associated Press contributed to this report. Front page photo courtesy the AP,