First-time filings up 12,000 in latest week to 500,000, data show
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) -- First-time filings for state unemployment benefits rose unexpectedly in the latest week to reclaim the highest level for this key economic benchmark since the middle of last November, the Labor Department reported Thursday.
For the week ended August 14, initial claims rose 12,000 to 500,000. This is the highest level since the week ended Nov. 14, 2009. Claims have risen for three straight weeks.
Claims had fallen as low as a 427,000 level in mid-July but have worsened steadily since. Economists are troubled by the lack of vigor in the labor market. With the unemployment rate near double-digit levels, businesses and households do not have the confidence to spend and invest.
This week's rise was unexpected. Economists had been projecting a slight decline was in the cards.
For the week ended August 7, initial claims were revised up to 488,000 from a previously reported 484,000.
Economists said claims show that the labor market is struggling to regain its footing. This report covers the same time that the data for the August nonfarm payroll report is collected, setting the stage for very conservative estimates from economists.
Meanwhile, the latest four-week moving average for initial claims rose 8,000 to stand at 482,500, the government's data showed.
This is the highest level since December 2009.
For the week ended Aug 7, continuing claims fell 13,000 to 4.48 million. Ongoing claims have fallen steadily from 5.16 million at the beginning of the year.
The four-week average of continuing claims fell 1,500 to 4.53 million.
The U.S. insured unemployment rate, which represents the portion of all workers covered by unemployment insurance who are collecting benefits, stayed put at 3.5%.
The total number of people collecting some type of unemployment benefits in the week ended July 31 as about 9.8 million, up about 192,000 from the prior week
