Initial Jobless Applications Rise After Holidays

Washington, DC, Jan. 12, 2012 -- Initial applications for unemployment benefits increased last week to the highest level since late November, according to the Labor Department.

Jobless claims rose by 24,000 to a seasonally adjusted 399,000 in the week ended Jan 7, the U.S. Labor Department said Thursday. Claims from two weeks ago were revised up to 375,000 from 372,000.

The increase was likely due to layoffs after the holiday selling season.

Economists had estimated that claims would rise to a seasonally adjusted 380,000.

The average of new claims over the past four weeks, meanwhile, climbed 7,750 to 381,750.

Claims usually rise to their highest level of the year, on an unadjusted basis, in the first or second week of January owing to end-of-the year changes in hiring and employment practices.