Washington, DC, January 25, 2007--The number of newly laid-off workers filing applications for state unemployment benefits climbed sharply in the latest week, suggesting some slack in labor markets at the beginning of the year.
The Labor Department said Thursday that first-time claims for jobless benefits rose by 36,000 to a seasonally adjusted 325,000 in the week ended January 20, marking their highest level since December 30. Economists had been expecting 310,000 new claims.
The four-week average of initial claims rose by 1,500 to 309,250, the highest since January 6. Economists consider the four-week average a better measure of labor market strength because it smoothes out one-time events like strikes or weather.
Claims for the week ended January 13 were revised to 289,000 from 290,000.
The number of people continuing to collect unemployment benefits fell by 39,000 to a seasonally adjusted 2.48 million in the January 13 week. It's the lowest in two weeks. The four-week average of continuing claims fell by 9,500 to stand at 2.46 million, the lowest since November 18.
