DATA SNAP: US Jobless Claims +26K To 397K Last Week; Survey +7KLast update: 3/10/2011 8:30:00 AM By Luca Di Leo and Jeffrey Sparshott
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--New jobless claims last week rose more than expected, but the level remained consistent with a slowly improving labor market. Initial jobless claims rose by 26,000 to 397,000 in the week ended March 5, the Labor Department said Thursday in its weekly report. The prior week's figures -- when claims fell to the lowest level in almost three years -- were revised up slightly, to 371,000 from an original estimate of 368,000. Economists surveyed by Dow Jones Newswires had forecast claims would rise by only 7,000 in the week ending March 5. New claims figures have been more volatile than usual at the start of the year due to unusually severe winter weather in January. But in the last three weeks, claims have remained under 400,000, widely considered the point at which the economy is gaining more jobs than it's shedding. The four-week moving average of new claims, considered a more reliable indicator because it smoothes out volatile data, rose 3,000 to 392,250 in the week ending March 5. A Labor Department economist said there were no unusual factors in the latest data. Strong hiring in February pushed the U.S. unemployment rate down to 8.9%, the lowest level in nearly two years. Employers rebounded from a harsh winter to add 192,000 jobs to nonfarm payrolls last month as strong private-sector gains in manufacturing and service industries more than offset accelerating layoffs by state and local governments. Still, the hole caused by the recent recession was so deep that Federal Reserve officials expect the unemployment rate to remain close to 9.0% until the end of the year, and for prices to remain low over the next two years. For these reasons, officials are seen sticking to their easy-money policies at a policy-setting meeting next week, including continued purchases of $600 billion in Treasurys slated to run until June. The Labor Department said in Thursday's report that the number of continuing claims--those drawn by workers for more than a week--fell by 20,000 to 3,771,000 in the week ended Feb. 26. Continuing claims are reported with a one-week lag. The unemployment rate for workers with unemployment insurance was 3.0% in the week ending Feb. 26, unchanged from the previous week. The state-by-state breakdown of new claims, which is also reported with a one-week lag, showed that California had the largest drop in claims--12,730--due to a shorter workweek. Massachusetts reported the largest increase in claims, with an increase of 3,804 due to the impact of school holidays on the transportation and service industries. The Labor Department official said Alaska was the only state for which data was estimated in the latest week. The Labor Department report on jobless claims can be accessed at: dol.gov -By Luca Di Leo and Jeffrey Sparshott, Dow Jones Newswires; 202-862-6682; luca.dileo@dowjones.com (END) Dow Jones NewswiresMarch 10, 2011 08:30 ET (13:30 GMT) |
