U.S. Weekly Initial Jobless Claims Hit 4-Year High

Washington, D.C. (AHN) - The number of individuals filing initial jobless claims for insurance increased more than expected according to the Labor Department's latest figures.

The report released Thursday found filings were up 35,000 to 380,000 for the week ending in April 26, climbing to a four-year high. The prior week was revised up slightly.

The market analysts surveyed by Dow Jones Newswire had projected a much smaller increase of 18,000.

"This is the level of jobless claims we would expect to see because we've got job losses in the economy," Ellen Zentner, economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, said in an interview with Bloomberg Television.

"This is a labor market where employers are conducting hiring freezes. They've delayed hiring plans."

While, the four-week moving average of initial claims, which is a less volatile measure, slipped by 6,500 to 363,750.

The four-week average was between 300,000 and 325,000 for much of 2007, while it was below 350,000 for most of the first quarter this year.

Non-farm payrolls fell by 80,000 jobs in March.

The number of continuing claims increased by 74,000 to 3,019,000, the highest level since April 2004 and the four-week average of continuing claims rose 16,750 to 2.98 million, the highest since May 2004.

According to the report, Connecticut registered the largest rise in initial jobless claims for the week of Apr. 19, 2,886, led by the layoffs in the transportation and service industries.

Michigan had the biggest decline in the number of people registering for unemployment insurance benefits, 8,102, led by fewer layoffs in the automobile industry.