Jobless Claims Higher Than Expected

Washington, DC, Sept. 11, 2008-- Initial jobless claims for unemployment insurance were higher than expected last week, while total benefit rolls rose to the highest level in almost five years, according to the Labor Department.

First-time jobless claims fell to 445,000 in the week ended Sept. 6 from a revised 451,000 the prior week that was more than initially reported. The number of people staying on rolls rose 122,000 to 3.525 million, the highest since October 2003.

The labor market is weakening as the biggest housing recession in a generation spills over to the broader economy, slowing demand and causing a surge in financial losses.

Economists had forecast claims would fall to 440,000 from a previously reported 444,000 in the prior week.

The four-week moving average of initial claims, a less volatile measure than the weekly figure, rose to 440,000 from 439,750, today's report showed.

So far this year, weekly claims have averaged 380,000, compared with 321,000 for all of 2007, when the economy generated 91,000 new jobs each month on average.

The surge in claims that began in the middle of July can be at least partly attributed to the government's extension of jobless benefits under legislation signed by President George W. Bush in June. The government hasn't been able to quantify the program's impact on initial claims.

The unemployment rate among people eligible for benefits, which tends to track the jobless rate, rose to 2.6 percent from 2.5 percent. Twenty-eight state and territories reported an increase in claims, while 25 had a decrease. These data are reported with a one-week lag.