Initial Jobless Claims Higher Than Expected

Washington, DC, July 24, 2008--Initial jobless claims rose last week to their highest level in nearly four months, the Labor Department 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 to 382,500.

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 had expected claims to rise to 380,000 this week.

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

Consistent levels atop the 350,000 mark would signal some weakening in the labor market. Claims above 400,000 are seen by many as a signal of recession.