Sandy is thought to have slowed US hiring in Nov.

CHRISTOPHER S. RUGABER AP Economics Writer Published:

WASHINGTON (AP) -- Superstorm Sandy is widely thought to have slowed U.S. job growth last month. The only question is how much -- an answer that's expected to emerge Friday in the government's jobs report for November.

Yet once the storm's impact is cleared away, the report may reveal that the job market is strengthening.


Analysts caution, though, that Sandy likely reduced the November job gains significantly. And some employers might have delayed hiring because of concerns that the economy will fall off the "fiscal cliff" next year. That's the name for tax increases and spending cuts that will take effect in January if Congress and the White House fail to reach a budget deal by then.


Sandy forced restaurants, retailers and other businesses to close in late October and early November in 24 states, particularly in the Northeast. Many people couldn't get to work and weren't paid. The government counts those cases as job losses, even if they are temporary. Those subtractions would reduce net hiring.

One encouraging sign is that the storm's effect is fading. Weekly applications for unemployment benefits have tumbled in the past three weeks after spiking in early November to an 18-month high of 451,000 because of Sandy.

Last week, applications fell to a seasonally adjusted 370,000. That's roughly the same level as before the storm and is consistent with moderate hiring.


The payroll losses from the storm could be higher in the government's total. That's because ADP counts people as employed if they remain on a payroll -- even if they're not paid. By contrast, the government counts people as employed only if they are paid.

The fiscal cliff's impact on hiring may be harder to quantify. Even if companies aren't cutting jobs because of the cliff, the uncertainty surrounding the outcome is likely delaying some hiring, economists say.




