Initial Jobless Claims Rise More Than Expected

Washington, DC, Jan. 27, 2011 -- Initial jobless claims surged last week as winter weather in some parts of the country kept workers at home, the Labor Department reported.

Initial claims jumped 51,000 to 454,000, the highest since late October and the largest weekly increase since September 2005. The rise exceeded economists' expectations for a slight gain to 405,000.

Four states had reported an increase in claims that was due to snow. In addition, seasonal trends also affected the data.

However, the four-week moving average of unemployment claims rose 15,750 to 428,750 last week, implying a slowly improving labor market.