Initial Jobless Claims Reach Six Year High

Washington, DC, Aug. 7, 2008--Initial jobless claims unexpectedly rose last week to the highest level in six years.

Claims for unemployment benefits increased by 7,000 to 455,000 in the week ended Aug. 2, the most since March 2002, from 448,000 the prior week. The number of continuing claims increased to a four- year high.

Economists had forecast claims would fall to 425,000, according to the median of 40 projections in a Bloomberg News survey. Estimates ranged from 390,000 to 463,000.

Some workers filing for extended benefits under a government-spending bill that was signed by President George W. Bush in June were deemed eligible to enter the program as first- time claimants, according to a Labor Department spokesman. That may have contributed to the jump in applications over the last few weeks, he said.

The four-week moving average climbed to 419,500 from 392,750, today's report showed.

The recent increase in claims brings the figures closer to losses seen in previous economic downturns. During the last recession, in 2001, about 415,000 workers a week on average filed new applications for benefits.