U.S. initial jobless claims rise to 333,000, up 11,000 -
Thursday, May 5, 2005 1:08:35 PM
afxpress.com
WASHINGTON (AFX) -- The number of workers filing for state unemployment benefits for the first time rose by 11,000 to a seasonally adjusted 333,000 in the week ended April 30, the Labor Department said Thursday
It marked the highest level of initial claims in four weeks
Economists had been expecting initial claims to rise to about 324,000, according to a survey conducted by MarketWatch. The four-week average of new claims, considerable more reliable a barometer of the labor market, stood at 321,500, down by 2,000 and the lowest in eight weeks. The four-week average smoothes out distortions caused by one-time events, such as weather, holidays and strikes
There were no special seasonal factors in this week's report, a Labor Department spokesman said
Jobless benefits are generally available for 26 weeks to workers who lose their jobs through no fault of their own. Meanwhile, the number of people collecting unemployment checks rose by 38,000, to 2.589 million, in the week ended April 23. The four-week average of continuing claims dropped by about 24,000 to a four-year low of 2.607 million. The insured unemployment rate, representing the percentage of covered workers receiving checks, remained at 2%
The figures come one day before the Labor Department reports on April nonfarm payrolls. Economists are expecting about 195,000 net new jobs to have been created in April, after a disappointing 110,000 increase in March
Initial jobless claims averaged about 325,000 per week in April, down from 336,000 in March. But claims represent only one-half of the job creation/destruction equation
The Federal Reserve boosted short-term interest rates on Tuesday by a quarter of a percentage point while acknowledging that economic growth had slowed at the same time that inflationary pressures mounted. However, the Fed said the labor market was apparently improving gradually
In a separate report issued Thursday, the Labor Department said productivity increased at a 2.6% annual rate in the first quarter, while unit labor costs increased 2.4% |
