The number of people applying for unemployment benefits rose sharply last week, but the figures were largely distorted by rare snowstorms that swept through the Southeast. Applications surged last week by a seasonally adjusted 51,000 to 454,000, the highest level since late October, the Labor Department says. A government analyst says a major reason for the spike was the harsh weather in Alabama, Georgia, North Carolina and South Carolina. That forced many companies to shut down temporarily and also prevented many people from applying for benefits in the previous week. When state offices, which had closed, reopened, people were able to file applications, which pushed the number of requests up sharply. The four southern states reported a large increase in the number of requests for unemployment benefits. Trucking companies, delivery firms, construction companies and others were affected. Applications had been declining steadily for several weeks. Requests for unemployment benefits fell sharply in the previous week, to 403,000.
Many economists consider data in January less reliable because of seasonal fluctuations.
