Jobless claims rise by largest amount in 3 months
By MARTIN CRUTSINGER
AP Economics Writer
WASHINGTON (AP) — The number of people filing new claims for unemployment
benefits unexpectedly rose last week by the largest amount in three months. The
big surge was a setback to hopes that layoffs were declining.
Applications for unemployment benefits rose to 471,000 last week, up by 25,000
from the previous week, the Labor Department said Thursday. It was the first
increase in five weeks and the biggest jump since a gain of 40,000 in February.
The forecast had been for claims to fall by around 4,000 from the previous
week. The large rise in new claims is evidence of how volatile the job market
remains, even as the economy grows.
The total for new claims was the highest since claims stood at 480,000 on April
10. It also pushed the average for the last four weeks to 453,500.
Employers are hiring again, but not at levels needed to make a dent in the
unemployment rate. The jobless rate actually increased in April to 9.9 percent.
An improving economy has lured those who had given up looking for work back
into the labor market. The jump in the unemployment rate came even though
payrolls rose last month by 290,000 jobs, the biggest gain in four years.
Analysts could trim their forecasts for job growth in May based on the sudden
rise in new claims. The increase occurred in the week that the government
conducts its survey for the monthly unemployment report.
The number of people receiving jobless benefits fell by 40,000 to 4.63 million
for the week ending May 8.
However, that figure does not include unemployed workers who have exhausted
their regular 26 weeks of benefits. An additional 5.3 million workers are
receiving extended benefits paid for by the federal government for the week
ending May 1.
The extended benefits have added as many as 73 weeks of unemployment on top of
the 26 weeks customarily provided by the states. But jobs have been scarce for
so long that many of those out of work will soon start running out of the
extended benefits.
For the week ending May 8, 35 states and territories saw increases in
applications for new jobless benefits and 18 saw declines.
The largest increases came in California, up 8,351 because of layoffs in
service industries and manufacturing, and Michigan, up by 3,175 because of
layoffs in the auto industry.