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Jobless claims average rises as Puerto Rico starts processing backlog

November 16, 2017

The US four-week moving average of initial claims for unemployment insurance rose to 237,750 last week, up 6,500 from the previous week’s unrevised average, according to seasonally adjusted numbers released today by the US Department of Labor.

The four-week moving average decreases the volatility of the weekly numbers. Total initial claims for unemployment insurance for the week ended Nov. 11 rose to 249,000, up 10,000 from the previous week’s unrevised level.

The department reported claims-taking procedures continue to be severely disrupted in the Virgin Islands. The ability to take claims has improved in Puerto Rico and it is now processing backlogged claims.

Reuters reported the number of Americans filing for unemployment benefits unexpectedly rose last week in part as the backlog of applications from Puerto Rico continued to be processed, but the underlying trend pointed to tightening labor market conditions. Economists polled by Reuters had forecast claims falling to 235,000 in the latest week. The low level of claims suggests strong job growth despite hurricane-related disruptions in September. Employment gains could, however, slow as companies struggle to find qualified workers, which economists expect will boost sluggish wage growth.