Jobless Claims Jump Unexpectedly

BY

The number of newly laid off workers filing claims for unemployment benefits shot up
unexpectedly last week, rising to the highest level in two months.

The Labor Department reported that unemployment claims totaled 324,000 last week, up
10,000 from the previous week. The big increase was unexpected.

Despite the year-long economic slowdown, the job market has remained strong as most
employers have resisted pressures to lay off workers in the face of a steep slump in housing and troubles in the domestic auto industry.

The increase last week pushed claims to the highest level since they stood at 325,000 for the
week ending April 21. The four-week average for claims rose to 314,500, the highest level since the first week in May. That increase reflected the fact that claims have posted increases for
three consecutive weeks.

Overall economic growth slowed to a lackluster annual rate of 0.6 percent in the first three months of this year, the weakest performance in four years. However, growth is expected to have
rebounded in the current April-June quarter to a rate of 3 percent or even better.

The Federal Reserve meets next week to review interest rates with most
analysts believing the central bank will leave
rates unchanged.

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