Jobless Claims Up By 4,000 To 372,000 And Four-Year High

May 29, 2008 11:11 a.m. EST

Washington, D.C. (AHN) - The number of individuals filing initial jobless claims increased more than expected last week, indicating a softening job market.

U.S. weekly initial jobless claims rose by 4,000 to 372,000 on a seasonally adjusted basis in the week ending May 24, from a revised 368,000 the prior week, according to the Labor Department on Thursday.

The Labor Department report Thursday showed the unemployment rate for workers with unemployment insurance, which tends to track the U.S. jobless rate, was unchanged at 2.3 percent.

While, the four-week average, which is a less volatile measure, of initial jobless claims dropped by 2,500 to 370,500 from 373,000.

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.

The number of continuing jobless claims increased by 36,000 to 3.10 million in the week ending May 17, while the four-week average of continuing claims rose by 18,500 to 3.06 million.

Market analysts had projected claims to rise to 370,000, from a previously reported 365,000 a week earlier, according to the median of 38 projections with estimating ranging from 355,000 to 380,000.

There were 28 states and territories registering an increase in initial jobless claims for the May 17 week, while 25 reported a drop in jobless claims.

The U.S. economy has lost jobs every month since the begining of this year and it shed as much as 20,000 in the month of April.

Job numbers for May will be released by the government June 6.