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U.S. jobless claims unexpectedly rise last week

Published 09/23/2010, 08:32 AM
Updated 09/23/2010, 08:36 AM

WASHINGTON, Sept 23 (Reuters) - New U.S. claims for unemployment benefits rose unexpectedly last week, government data showed on Thursday, highlighting continued labor market weakness.

Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 465,000, the Labor Department said, breaking two straight weeks of declines.

Analysts polled by Reuters had forecast claims unchanged at 450,000. The government revised the prior week's figure up to 453,000.

Last week's claims data covered the survey period for the government's closely watched employment report for September, scheduled for release early next month.

A Labor Department official said only one state had been estimated for last week's claims report and noted that applications for jobless benefits tend to rise in the week following a holiday.

The four-week average of new jobless claims, considered a better measure of underlying labor market trends, fell 3,250 to 463,250, the lowest since July 31.

The labor market has been showing modest signs of improvement after a setback in the second quarter as economic growth slowed sharply.

Relentlessly high unemployment is crimping consumer spending and the Federal Reserve on Tuesday signaled it was ready to inject more money into the economy to shore up the recovery and avert a damaging downward spiral in prices.

Despite the bump up in new applications for unemployment benefits, claims are holding well below a nine-month high of 504,000 touched in mid-August.

The number of people still receiving benefits after an initial week of aid dropped 48,000 to 4.49 million in the week ended Sept. 11 from an upwardly revised 4.54 million the prior week.

Analysts polled by Reuters had forecast so-called continuing claims slipping to 4.46 million from a previously reported 4.49 million.

The insured unemployment rate, which measures the percentage of the insured labor force that is jobless, dipped to 3.5 percent during that period from 3.6 percent the prior week.

The number of people on emergency benefits increased 113,785 to 4.2 million in the week ended Sept. 4. (Reporting by Lucia Mutikani; Editing by Neil Stempleman)

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