New claims for unemployment insurance, a signal of the pace of layoffs, rose to 439,000 in the week to November 10 from the previous week's figure of 361,000.

"Several states have experienced large increases of initial claims as a result of Hurricane Sandy," a Labor Department official said of the sharp rise.

Sandy blasted the northeastern coast of the United States at the end of October and beginning of November, shutting down major cities, leaving millions without power for days, and wrecking homes and businesses in many communities.

The weekly figure was far above the 360,000-380,000 range for claims of the past year, and pulled the four-week moving average higher, to 383,850.

Obama praises 'tough' New York after storm
New York (AFP) Nov 15, 2012 - US President Barack Obama praised New York's toughness on a visit Thursday to neighborhoods worst-hit by superstorm Sandy and appointed an official to coordinate the rebuilding effort.

"I'm very proud of you New York. You guys are tough. You bounce back," he said in a speech during a visit to Staten Island, where 23 of the Big Apple's 43 dead, as a result of hurricane-strength Sandy, perished.

Obama, who used his Marine One helicopter to get a look at the Rockaways and Breezy Point neighborhoods, which saw particularly heavy flooding during Sandy, said the city clearly had "some longterm rebuilding" to do.

He named his housing secretary, Shaun Donovan, as the pointman on federal assistance in the storm's aftermath and vowed to return "to make sure" that his administration had "followed through" on rebuilding commitments.

"There's still a lot of clean-up to do. People still need emergency help. They still need heat. They still need power. They still need food. They still need shelter. Kids are still trying to figure out where they're going to school," Obama said.

"And we are going to make sure that we stay here as long as people need that immediate help."

Pockets of Staten Island and other coastal fringes of New York remain without heat and light 17 days after Sandy hit, bringing devastating floods.

Visiting a federal aid center in Staten island, Obama was met with yells from a crowd of about 100 people.

One young woman who was at the center to get basic supplies said her house had been on the beach but was now "gone."

"We need help. He should of been here a long time ago," she said after talking with the president.

Another local said after meeting Obama that he'd lost "everything," including his job.

Obama could be seen hugging some of the New Yorkers and consoling them. He also praised clean-up crews that had come from Texas, West Virginia and other states to help. "We're proud of you guys," he said.

Obama was joined by New York Governor Andrew Cuomo and city Mayor Michael Bloomberg, among other officials.

As anger mounted around New York against utility companies that have yet to restore full power, Obama called out "the insurance companies and some of the other private sector folks."

"We need you to show some heart and some spirit and help us rebuild as well," he said.

White House spokesman Jay Carney said Obama "made clear that restoring power is an absolute priority, and he continues to make that clear."

Carney said the White House had put forward $1.5 billion for recovery efforts, including $600 million already approved for direct assistance.