Temporary layoffs in the US automotive industry helped push initial claims for jobless benefits up by a sharper-than-expected 25,000 last week, according to a government report today.
First-time claims for state unemployment aid climbed to 350,000 in the week ended May 28th from a revised 325,000 the prior week, the Labor Department said. That was the highest reading since late March.
Economists had expected initial claims to inch up to 325,000 from the 323,000 initially reported for the prior week.
The larger-than-expected gain pushed a four-week moving average of claims, which smooths weekly volatility to provide a clearer view of trends, up 3,500 to 334,500, its highest level since early April.
The number of Americans who remained on the benefit rolls after claiming an initial week of aid also moved higher, rising 32,000 to 2.60 million in the week ended May 21st, the latest period for which figures are available.