US weekly jobless claims rise 7,000 to 455,000, highest level in over six years

Thu, Aug 7 2008, 12:51 GMT

WASHINGTON (Thomson Financial) - The number of individuals filing new claims for unemployment insurance in the latest week rose unexpectedly to a level not seen in over six years, while the number of individuals continuing to file claims for unemployment rose to an over four-year high, the Labor Department said today.

The number of first-time claims filed in the week ending August 2 rose by 7,000 to 455,000, the highest level since March 2002. Economists polled by Thomson Reuters IFR Markets were expecting claims to fall in the week to 430,000.

The Labor Department said today that claims are still being influenced by an indirect response to the Emergency Unemployment Compensation (EUC) program. Many individuals who were contacted about the program in recent weeks learned they were actually qualified for regular unemployment insurance instead.

The four-week moving average for initial claims, which economists prefer because it smoothes out fluctuations in weekly data, rose by 26,750 to 419,500. That is the highest level since July 2003.

Meanwhile, the number of people continuing to receive unemployment insurance in the week ending July 26 rose by 31,000 to 3.311 mln, the highest level since December 2003. Economists were expecting continuing claims to fall to 3.225 mln.

The four-week moving average for continuing unemployment claims increased by 27,000 to 3.201 mln, the highest level since January 2004.

tessa.moran@thomsonreuters.com

tlm/wash/rw

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.