New Jobless Claims Highest in Over Two Years

Washington, DC, January 31, 2008—New claims for unemployment benefits increased by a much larger-than-expected 69,000 last week, the highest weekly jump in more than two years, the Labor Department reported.

Initial claims totaled 375,000 in the week ending January 26, the highest since October 2005, when claims reached 376,000 after Hurricane Katrina.

Economists had forecast 315,000 claims last week.

The Labor Department official said the timing of the Martin Luther King, Jr. holiday may have affected the numbers.

The four-week average of weekly claims increased to 325,750 last week, up from 315,500 the previous week.