Applications for unemployment benefits rise for 5th time in 6 weeks
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — The number of people who applied for jobless benefits last week rose again, the government reported Thursday, in another sign that the U.S. labor market has cooled off.
Jobless claims climbed by 6,000 to a seasonally adjusted 386,000 in the week ended June 9, the Labor Department said. Claims from two weeks ago were revised up to 380,000 from an original reading of 377,000, based on more complete data collected at the state level.
Economists surveyed by MarketWatch had projected claims would fall to 376,000.
The level of claims is a rough gauge of whether layoffs are rising or falling. Claims fell steadily in the second half of 2011 and touched a four-year low in early February, but they turned higher shortly afterward and remain somewhat elevated.
Claims have totaled 380,000 or higher over the past three weeks, a level that economists say is consistent with slow hiring trends.
“Although not a dramatic move, the drift up in the underlying trend for claims will add to concerns surrounding the strength of the U.S. labor market recovery,” said economist Andrew Grantham at CIBC World Markets.
The weaker pace of job creation has been reflected in the monthly employment report, a more accurate calculation of whether companies are hiring. The U.S. unemployment rate rose in May to 8.2%, its first increase in nearly a year.
Meanwhile, the average of new claims over the past month rose by 3,500 to 382,000, the highest level in six weeks. The four-week average reduces seasonal volatility in the weekly data and is seen as a more accurate barometer of labor-market trends.
Also Thursday, the Labor Department said continuing claims decreased by 33,000 to a seasonally adjusted 3.28 million in the week ended June 2. Continuing claims reflect the numbers of people already receiving benefits.
About 5.82 million people received some kind of state or federal benefit in the week ended May 26, down 145,990 from the prior week. Total claims are reported with a two-week lag.
Before the 2007-09 recession, total claims averaged less than 3 million. The category also includes certain federal employees, newly discharged veterans and people who get special assistance when their jobs move overseas.
Jeffry Bartash is a reporter for MarketWatch in Washington.
