WASHINGTON (AP) -- The number of Americans filing new claims for unemployment benefits jumped last week, apparently reflecting the spring slowdown in the economy.þþThe Labor Department said Thursday that applications for jobless benefits totaled 332,000 last week, an increase of 19,000 from the previous week, exceeding market expectations. Economists had forecast that jobless claims would rise by 7,000.þþThe level of unemployment claims was near a high of 337,000 in late May, a time of markedly weak job growth.þþThe latest weekly figure included some 4,000 claims for jobless benefits filed by workers in New Jersey during the weeklong state government shutdown there. Casino and racetrack employees, road construction workers and others who don't draw paychecks directly from the state lost wages as a result of the shutdown. State workers will be paid for the days they didn't work.þþThe weekly jobless figure also included an unspecified number of claims stemming from seasonal shutdowns in the auto industry.þþThe four-week moving average for claims increased to 317,250 from 308,500 in the previous week.þþA number of recent indicators have provided evidence that the economy slowed in the spring under the impact of surging gasoline prices, rising interest rates and a cooling housing market.þþU.S. employers, wary of bulking up payrolls with the economy slowing and energy prices rising, added a disappointing 121,000 jobs in June. Yet while job growth was tepid, growth in wages heated up -- fanning inflation worries.þþEmployment data released last week also showed that the nation's civilian unemployment rate held steady at 4.6 percent.þþSlowing economic growth might justify the Federal Reserve taking a break in its two-year campaign to tighten credit by raising interest rates. On the other hand, rising prices and wages might warrant another rate increase to prevent inflation from taking off.þþThe count of new jobs added to the economy in June did mark an improvement from the 92,000 new positions logged in May -- the fewest in seven months. But it still fell short of economists' forecasts for an increase of around 175,000.þþFor the week ended July 1, the state with the largest increase in unemployment claims was Kentucky, with a rise of 6,153. The increase was attributed to layoffs in manufacturing.þþConnecticut, Indiana, Massachusetts, Michigan, Mississippi, New York and Pennsylvania all reported increases in jobless claims of more than 1,000.þþFour states had a decline in jobless claims exceeding 1,000, led by North Carolina -- which posted a drop of 7,197, which it attributed to fewer layoffs in industries including construction, metals, textiles and lumber. The others were California, Florida and Missouri.þþThe state data lag behind the national jobless claims data by one week. þþ
Source: NY Times
