Sharp Rise in Jobless Claims Raises Concern
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Illustrating the lack of a substantial jobs recovery, initial jobless claims for the week ending April 30 rose sharply to 474,000, an increase of 43,000 from the previous week's revised figure of 431,000. The number of new jobless claims was well above the 410,000 economists were expecting.
Auto-plant shutdowns related to the earthquake in Japan and other unusual events drove the surprise jump, the Labor Department said.
The advance seasonally adjusted insured unemployment rate was 3.0 percent for the week ending April 23, an increase of 0.1 percentage point from the prior week's unrevised rate of 2.9 percent.
Consistently rising jobless claims throughout April have caused investors to raise concerns related to the sluggish recovery in the jobs market.
Traders could see a silver lining in the news however, as the lack of progress in job growth could lead to the Federal Reserve maintaining or expanding their easy money policies.
Auto-plant shutdowns related to the earthquake in Japan and other unusual events drove the surprise jump, the Labor Department said.
The advance seasonally adjusted insured unemployment rate was 3.0 percent for the week ending April 23, an increase of 0.1 percentage point from the prior week's unrevised rate of 2.9 percent.
Consistently rising jobless claims throughout April have caused investors to raise concerns related to the sluggish recovery in the jobs market.
Traders could see a silver lining in the news however, as the lack of progress in job growth could lead to the Federal Reserve maintaining or expanding their easy money policies.
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