New claims for jobless benefits unexpectedly rose last week following two declines, a setback for a sector that hasn't been producing many jobs.
Claims increased by 10,000 to a seasonally adjusted 418,000 in the week ended July 16, the Labor Department said Thursday. The prior week's claims figure was revised to 408,000, up from an originally reported 405,000.
The increase was the first in three weeks. Economists surveyed by Dow Jones Newswires had forecast claims to remain unchanged.
Minnesota indicated about 1,750 of its claims were the result of a state government shutdown.
The four-week moving average of new claims, considered a more reliable indicator of the labor market's recent performance, fell last week, by 2,750 to 421,250.
Still, the job market is weak. Economists generally think the economy is adding more jobs than it is shedding once the weekly claims figure falls below 400,000. Claims have been above that level since the week that ended April 9.
In May and June, the economy created only 43,000 jobs, according to Labor's latest monthly report on non-farm payrolls in the U.S. The Federal Reserve predicts the unemployment rate will remain high into 2012. In an example of the labor market's softness, networking giant Cisco Systems Inc. (CSCO) is planning to reduce its work force by about 6,500 employees.
The Labor Department Thursday said the number of continuing unemployment benefit claims -- those drawn by workers for more than a week -- declined by 50,000 to 3,698,000 in the week ended July 9. Continuing claims are reported with a one-week lag.
The unemployment rate for workers with unemployment insurance fell to 2.9% in the week ending July 9, down from 3.0%.
The state-by-state breakdown, which is also reported with a lag, showed the biggest drop in claims the week ended July 9 was in California, with a decrease of 15,751 due to fewer service industry layoffs. The largest increase in claims that week was in New York, up by 20,599.
The Labor Department report on jobless claims can be accessed at:
Claims increased by 10,000 to a seasonally adjusted 418,000 in the week ended July 16, the Labor Department said Thursday. The prior week's claims figure was revised to 408,000, up from an originally reported 405,000.
The increase was the first in three weeks. Economists surveyed by Dow Jones Newswires had forecast claims to remain unchanged.
Minnesota indicated about 1,750 of its claims were the result of a state government shutdown.
The four-week moving average of new claims, considered a more reliable indicator of the labor market's recent performance, fell last week, by 2,750 to 421,250.
Still, the job market is weak. Economists generally think the economy is adding more jobs than it is shedding once the weekly claims figure falls below 400,000. Claims have been above that level since the week that ended April 9.
In May and June, the economy created only 43,000 jobs, according to Labor's latest monthly report on non-farm payrolls in the U.S. The Federal Reserve predicts the unemployment rate will remain high into 2012. In an example of the labor market's softness, networking giant Cisco Systems Inc. (CSCO) is planning to reduce its work force by about 6,500 employees.
The Labor Department Thursday said the number of continuing unemployment benefit claims -- those drawn by workers for more than a week -- declined by 50,000 to 3,698,000 in the week ended July 9. Continuing claims are reported with a one-week lag.
The unemployment rate for workers with unemployment insurance fell to 2.9% in the week ending July 9, down from 3.0%.
The state-by-state breakdown, which is also reported with a lag, showed the biggest drop in claims the week ended July 9 was in California, with a decrease of 15,751 due to fewer service industry layoffs. The largest increase in claims that week was in New York, up by 20,599.
The Labor Department report on jobless claims can be accessed at:
