Jobless Claims Highest Since June 1994
Thursday May 24, 10:09 am Eastern Time
By Nancy Waitz
<<WASHINGTON (Reuters) - The number of new applications for jobless benefits rose last week, while the number of people remaining on unemployment rolls reached the highest level in more than six years, the government said on Thursday.
Initial claims for state jobless benefits jumped by 15,000 in the week ended May 19 to 407,000 from a revised 392,000 in the prior week, the Labor Department said. Last week's claims number was revised to a climb in claims, rather than a drop as first reported.
The weekly jobless data are attracting increasing attention as economists look to the numbers for clues to the broader employment picture amid a softening U.S. economy.
First-time claims, up for the second consecutive week, were at their highest since 425,000 in the April 28 week.
The rise in the May 19 week was sharper than expected. U.S. economists in a Reuters survey had projected claims in the latest week would rise to 388,000.
In a sign the pace of hiring slowed sharply, the number of continued claims rose to 2,772,000 in the week ended May 12 -- the latest week for which figures were available -- from 2,683,000 in the previous week and the highest since 2,784,000 in the June 11, 1994 week.
The closely watched four-week moving average, which irons out week-to-week volatility, fell to 403,000 in the week ended May 19 from 404,250 in the May 12 week.
The overall high level of jobless claims could reinforce expectations of weakness in the May employment report, scheduled for release on June 1. In a preliminary Reuters poll, economists predicted an 8,000 drop in new jobs, from a decline of 223,000 in April.
``The recent level of initial claims for unemployment insurance suggests that the unemployment rate will likely continue to rise over the next several months,'' White House economic adviser Glenn Hubbard told Congress' Joint Economic Committee on Wednesday.
The U.S. unemployment rate now stands at 4.5 percent, up from a 30-year low of 3.9 percent hit last autumn. It is expected to rise to 4.6 percent in May.
In week the ended May 12 -- the week before the latest reported claims -- Labor said two states reported an increase in claims of more than 1,000, with Mississippi reporting 1,280 additional claims centered in the apparel, furniture and trade industries.
In the same week, two states and Puerto Rico reported a decrease in claims of 1,000 or more, led by Michigan with 2,437 fewer claims in the automobile industry.>> |
