Jobless claims rise

Jobless claims rise
Weekly filings, above economists' estimates, at highest level since July 1998
April 5, 2001: 9:20 a.m. ET


NEW YORK (CNNfn) - The number of new jobless claims in the United States rose to its highest level since July 1998, the government reported Thursday, with the figure topping economists' forecasts.

The U.S. Labor Department said 383,000 new claims for state unemployment benefits were filed in the week ended March 31, up 18,000 from a revised 365,000 in the prior week.

A consensus of economists had expected of 372,000 claims for the week, according to Reuters.

The closely watched four-week moving average rose nearly 3,000 to 377,500 from the previous week's revised numbers of 374,750. Economists watch the four-week moving average more closely because it gives a better reading on the health of the labor market by smoothing out fluctuations in the weekly data.

One state -- Michigan -- reported an increase in claims of more than 1,000 in the week ended March 24, the latest period for which the data are available. Michigan cited more layoffs in the automobile industry for the increase.

More information on the job picture will be revealed Friday, when the Labor Department releases the March unemployment rate and payrolls data. According to economists surveyed by Briefing.com, the jobless rate is expected to have risen to 4.3 percent from 4.2 percent in February, while nonfarm payrolls are expected to have climbed by 70,000 compared with 135,000 in the prior month.