Applications for jobless benefits jump unexpectedly

The number of newly laid-off workers filing claims for unemployment benefits shot up unexpectedly last week, rising to the highest level in two months.

The Labor Department reported Thursday that initial jobless claims totaled 324,000 last week, up 10,000 from the previous week, to the highest level since mid-April.

Although the big increase was unexpected, analysts said it did not change their view that the labor market remained healthy despite a yearlong economic slowdown caused by a steep slump in housing and troubles in the domestic auto industry.

Analysts noted that claims remained close to their average of 319,000 over the first 5 1/2 months of this year.

Though some economists said they expected layoffs to rise as the year progressed, they said the jump was not necessarily a sign of a trend.

“It will take more than one week to convince us things are really changing,” said Ian Sheperdson, chief U.S. economist for High Frequency Economics.

The increase last week pushed claims to the highest level since the week ended April 21, when they stood at 325,000. The four-week average for claims rose to 314,500, the highest level since the first week in May. Claims have increased for three consecutive weeks.

Thirty-seven states and territories posted increases in jobless claims for the week ended June 9, and 16 states had declines. The state data lag behind the national data by one week and are not adjusted for normal seasonal variations.

California had the largest rise in applications, an increase of 10,333 that was attributed to higher layoffs in trade and service industries.