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US jobless claims hit two year high

US jobless claims hit two year high
By FT reporters in New York
Published: September 22 2005 14:20 | Last updated: September 22 2005 14:20

The number of workers claiming unemployment benefit as a result of Katrina rose to 214,000, according to figures to official data on Thursday. This pushed the number of first time claimants to 432,000, its highest level in two years. Economists had been braced for an even higher figure of 450,000.

Many believe the claims will rise even higher, as more people displaced by Katrina are able to file for support.

Employment is expected to decline by at least 200,0000. HSBC said there was a risk that the job loss could even be between 300,000-500,000.

Unemployment benefits are available for 26 weeks under the state programs.

“Subtracting the claims associated with Katrina, suggests that the labour market remains in a healthy condition, with claims at around 33,000,” said Economy.com, the consultancy.


LINK: http://news.ft.com/cms/s/c761eda6-2b68-11da-995a-00000e2511c8.html