DATA SNAP:US Jobless Claims +1K To 427K Last Wk; Survey -5KLast update: 6/9/2011 8:30:00 AM
By Andrew Ackerman and Jeffrey Sparshott
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--U.S. workers filed slightly more new claims for jobless benefits last week, another sign of persistent weakness in the economy. Initial unemployment claims increased by 1,000 to a seasonally adjusted 427,000 in the week ended June 4, the Labor Department said Thursday in its weekly report. The prior week's figure was revised to 426,000 from an originally reported 422,000. Economists surveyed by Dow Jones Newswires had forecast claims would fall by 5,000 to 417,000. The four-week moving average of new claims, considered a more reliable indicator because it smoothes out volatile weekly data, dropped by 2,750 to 424,000 in the week ending June 4. Economists generally think the economy is adding more jobs than it is shedding once the weekly claims figure falls below 400,000. A Labor Department statistician said there were no unusual factors in Thursday's report. Last week, the Labor Department reported hiring by U.S. companies slowed dramatically in May, as nonfarm payrolls rose by just 54,000. The jobless rate also unexpectedly rose to 9.1% from 9.0%. The May employment report caused analysts to warn that the recovery may have stalled. Job growth is essential for increased spending by consumers, who help propel the U.S. economy. Federal Reserve Chairman Ben Bernanke said Tuesday the recovery is continuing at a moderate pace, "albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers." In its report Thursday, the Labor Department said that the number of continuing unemployment benefit claims--those drawn by workers for more than a week--decreased by 71,000 to 3,676,000 in the week ended May 28. Continuing claims are reported with a one-week lag. The unemployment rate for workers with unemployment insurance was 2.9% in the week ending May 28, down from 3.0% a week earlier. The state-by-state breakdown of new claims, which is also reported with a one-week lag, showed New York had the biggest increase, up 3,187 because of layoffs in the construction, manufacturing and service industries. California saw the biggest drop in claims, 1,614, but provided no explanation for the decline. The Labor Department report on jobless claims can be accessed at: dol.gov -By Andrew Ackerman and Jeffrey Sparshott; Dow Jones Newswires; 202-569-8390; andrew.ackerman@dowjones.com (END) Dow Jones NewswiresJune 09, 2011 08:30 ET (12:30 GMT) |
