US jobless claims at eight-month high

Financial Times:

New claims for unemployment benefits rose to the highest level in eight months, surprising analysts, as one-time events led more Americans to file for insurance.

The weaker figures add to uncertainty about the US economic recovery as businesses slow hiring and surging commodity prices hold back growth.

First-time claims rose by 43,000 to 474,000 in the week ending April 30 from a revised 431,000 the week before, according to the US labour department. That was higher than the 410,000 expected by economists and left initial claims at the highest level since August. The less volatile four-week moving average rose by 22,250 to 431,250.

The unexpectedly sharp rise was due to events not accounted for in the seasonal adjustments made in the statistics, the labour department said on Thursday. These events included a spring break holiday at New York schools, a new emergency benefits program in Oregon and shutdowns at car manufacturers following the Japanese earthquake.