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Initial Claims Grow 21,000 Last Week as Holiday Volatility Continues

January 26, 2012 11:15 AM EST
Initial claims rose for the weekend ended January 21st, as seasonal volatility continues to shake out.

According to data from the U.S. Department of Labor Thursday, applications for jobless benefits rose 21,000 to 377,000. The number is up from a revised 352,000 the prior week, and was higher than 370,000 expected by analysts.

The four-week moving average dropped 2,500 to 377,500 last week.

Numbers included the Martin Luther King, Jr. holiday, which makes adjustments more difficult.

Continuing claims rose 88,000 to 3.554 million for the week ended January 15th, which was right in-line with estimates. Those on extended benefits fell 146,100 to 3.41 million for the week ended January 7th. Economists had been expecting a continuing claim reading of 3.5 million even.

The unemployment rate for those receiving benefits rose 0.1 point to 2.8 percent.

Though hiring is picking up, more needs to be done to sustain household spending, which accounts for the lions share of the U.S. economy. Things appeared to be picking up in December, when nonfarm payroll numbers showed additions of 200,000 positions, well above the 150,000 expected.


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