Jobless Claims Rise More Than Expected

Washington, DC, December 20, 2007--The Labor Department said Thursday that new applications filed for jobless benefits rose by a seasonally adjusted 12,000 to 346,000.

It was about 11,000 more than economists were expecting.

The four-week moving average of new claims for unemployment benefits rose by 4,250 to 343,000 last week, the highest level in two years.

Economic growth in the October-to-December quarter is expected to slow substantially, to a pace of just 1.5 percent or less. The nation's unemployment rate, now at 4.7 percent, is expected to climb to 5 percent by early next year.