Thursday, April 28, 2011

More People Applied for Unemployment Benefits

More People Applied for Unemployment Benefits | CNSnews.com
Thursday, April 28, 2011

Washington (AP) - More people sought unemployment benefits last week, the second rise in three weeks, a sign of the slow and uneven jobs recovery.

Applications for unemployment benefits jumped 25,000 to a seasonally adjusted 429,000 for the week ending April 23, the Labor Department said Thursday. That's the highest total since late January.

The four-week average of applications, a less volatile measure, rose to 408,500, its third straight rise and the first time it has topped 400,000 in two months. Applications near 375,000 are consistent with sustained job creation. Applications peaked during the recession at 659,000.

Several economists attributed the increase to difficulties in seasonally adjusting the data around the Easter holidays. Since the timing of Easter changes each year, the data around the holiday week can be volatile.

"Given these technical factors, we are inclined to dismiss the recent backup," said Carl Riccadonna, an economist at Deutsche Bank Securities. "We will be looking for claims to move back below 400,000 in early May."

Other analysts were more slightly more concerned. Ryan Wang, an economist at HSBC Securities, noted that the four-week average has increased by 20,000 in the past month.

"Minor seasonal distortions are not a good reason to dismiss the underlying increase in jobless claims," Wang wrote in a note to clients. "This is a big enough increase to merit some concern about the direction of employment growth going forward."

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