Jobless claims highest since late March

[Omaha Steve]

http://www.marketwatch.com/news/story/initial-jobless-claims-highest-since/story.aspx?guid={160AFFE0-3A5D-400F-8EF1-36BFA99CA55B}

By Greg Robb, MarketWatch

WASHINGTON (MarketWatch) -- First-time claims for state unemployment benefits rose last week to their highest level in nearly four months, the government reported Thursday.

For the week that ended July 19, initial claims increased by 34,000 to stand at 406,000, the Labor Department said. It was the highest level of initial claims seen since the week ended March 29.

The four-week moving average of new claims, meanwhile, rose by 4,500, reaching 382,500. The four-week average is sometimes considered a better indicator because it smoothes out distortions such as weather-related events and labor strikes.

A Labor Department official said that claims have been very volatile this month in light of the annual pattern of auto-plant shutdowns for retooling as well as the Fourth of July holiday and the end of the second quarter. Economists expect the volatility to subside in coming weeks.

Economists had expected claims to rise to 380,000 this week. See Economic Calendar.

The number of people continuing to collect unemployment benefits, meanwhile, fell in the week ended July 12 to 3.11 million, down 9,000.

The four-week average of continuing claims also fell, off 7,000 to stand at 3.13 million.

FULL story at link.