Washington., DC, June 1, 2006--Initial claims for unemployment benefits rose last week to the highest level since October, the Labor Department reported Thursday.
First-time claims rose by 7,000 to 336,000 in the week ending May 27. Excluding one week in mid-May when a government shutdown in Puerto Rico boosted claims, that's the largest number of new claims in any week since the week of Oct. 15, in the wake of the devastating Gulf hurricanes.
A Labor Department spokesman said last week's initial claims were not impacted by the Puerto Rico shutdown, which has been resolved.
The four-week average of new claims -- considered a better barometer of underlying labor market conditions because it smoothes out one-time distortions - rose by 2,750 to 333,500, the most since the week of Oct. 29.
