DATA SNAP: US Jobless Claims +43K To 474K In Apr 30 WeekLast update: 5/5/2011 8:30:00 AM
By Jeff Bater and Luca Di Leo
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--New claims for jobless benefits unexpectedly surged last week to their highest level since last summer, according to data giving another sign of the economy's struggle in creating jobs. Initial unemployment claims increased by 43,000 to a seasonally adjusted 474,000 in the week ended April 30, the Labor Department said Thursday in its weekly report. The prior week's figure was revised to 431,000 from an originally reported 429,000. Economists surveyed by Dow Jones Newswires had forecast claims would fall by 19,000 in the latest week. The level of 474,000 was the highest since the week ending Aug. 14, 2010. A Labor Department analyst attributed the surprising increase to one-time administrative factors, including additional layoffs in New York state due to spring break, which doubled the number of claims in the state. Other reasons cited were a new emergency benefit program in Oregon, and additional automobile industry claims. "I don't think it's economic factors," the analyst said. Still, the four-week moving average of new claims, considered a more reliable indicator because it smoothes out volatile weekly data, climbed by 22,250 to 431,250 in the week ending April 30. Economists generally think that the economy is adding more jobs than it is shedding once the weekly claims figure falls below 400,000. So far this year, new claims have been bouncing above and below that number, an indication of the jobs market's uncertain recovery. The U.S. unemployment rate has come down quite a bit in the last six months yet remains elevated at 8.8% in March. Economists think the jobless rate held steady in April, according to their forecasts on the government's monthly employment data due out Friday. They also predict the economy created 185,000 jobs last month, which would be below March's increase of 216,000. This week, a national employment report published by payroll giant Automatic Data Processing Inc. (ADP) and consultancy Macroeconomic Advisers showed private-sector payrolls in April grew below expectations. And the Institute for Supply Management, a research group, indicated in its monthly report that payrolls within the U.S. services sector barely grew in April. Job growth is essential for increased spending by consumers, who help propel the U.S. economy. The Labor Department said in Thursday's report that the number of continuing unemployment benefit claims--those drawn by workers for more than a week--rose by 74,000 to 3,733,000 in the week ended April 23. Continuing claims are reported with a one-week lag. The unemployment rate for workers with unemployment insurance was 3.0% in the week ending April 23, compared to 2.9% a week earlier. The state-by-state breakdown of new claims, which is also reported with a one-week lag, showed New Jersey had the biggest rise in jobless claims, up 5,326 because of layoffs in the transportation, warehousing, trade, service, and public administration industries. Florida had the biggest decrease, 1,861, because of fewer layoffs in the construction, trade, and service industries, and in agriculture. |
