Jobless claims rise due to Hurricane Gustav

Last week’s number first to include claims stemming from hurricane

WASHINGTON - New applications for unemployment benefits rose unexpectedly last week, largely due to Hurricane Gustav, the government said Thursday, adding further strain to the economy.

The Labor Department reported that initial jobless claims rose to a seasonally adjusted 455,000, up 10,000 from the prior week. Wall Street economists had expected claims to fall slightly to 440,000.

Layoffs can worsen the nation’s economic woes as newly unemployed workers and those that fear for their jobs cut back on their spending and fall behind on their debts. Consumer spending accounts for about two-thirds of the economy.