The number of US workers claiming jobless benefits for the first time climbed last week, as the labour market continues to signal that its recovery lag the overall economy.
New jobless claims rose by 11,000 to 531,000, the labour department said on Thursday. The figures were worse than economists anticipated, although the less volatile four-week average showed that new claims have been waning in the last month.
Continuing unemployment claims declined by 98,000 to 5.92m in the week ending October 2. Many Americans have seen their jobless benefits expire and are waiting for government legislation that could extend payments.
Only California saw a big drop-off in new claims, while Florida, New York, Wisconsin and Indiana reported more job cuts in industries such as construction, manufacturing and the car sector. On Tuesday, Sun Microsystems announced that it would slash 3,000 jobs during the next year, as customers have delayed purchases of new equipment.
Oregon, Nevada and Pennsylvania have the highest insured unemployment rates and many states have already moved to extend benefits. The labour department said earlier this week that unemployment rates rose in 23 US states last month.