First-time claims for unemployment benefits in the U.S. came in well above estimates in the week ending Jan. 31.
Initial claims for unemployment benefits in the United States rose to 626k in the week, following an upwardly revised 591k claims in the prior week, according to the U.S. Department of Labor. Claims were forecast to come in at 580k.
The four-week moving average for initial claims rose to 582,250, up from 543,250 in the week prior.
Prior to the holiday period, the number of initial jobless claims had hit a 16-year high of 589k in the week ending Dec. 20. Over the holiday period, claims came in significantly lower, though economists said those figures were likely skewed by the Christmas and New Year's holidays.
Meanwhile, continuing claims rose to 4.788 million in the week ending Jan. 24, below the consensus forecast for a rise of 4.795 million The prior week's level of 4.776 million was revised down to 4.768 million. This marks the 10th week that continuing claims have been above the four million mark, which is putting the figure closer to the all-time high of 4.713 million recorded in November 1982.
The four-week moving average for continuing claims rose to 4.672 million, up from 4.630 million in the previous week.
By Stephen Huebl
©CEP News Ltd. 2009