US jobless claims rise in latest week

New US jobless figures rose unexpectedly last week on the back of layoffs after a series of tornadoes that struck the Midwest…

New US jobless figures rose unexpectedly last week on the back of layoffs after a series of tornadoes that struck the Midwest, a government report showed today.

Initial claims for state unemployment insurance benefits rose 7,000 to 428,000 in the May 17th week from an upwardly revised 421,000 for the prior week, the US labour office said.

Earlier this month, tornadoes swept through such states as Oklahoma, Missouri and Kansas, damaging automotive plants and other businesses causing many job losses.

Treasuries, stocks and the US dollar showed little reaction to the unexpected rise in jobless data.

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The number of people continuing to draw a week of benefits fell by 36,000 to 3.7 million, but the trend remains high, suggesting people are still having a tough time finding work. Things could get tougher for some as the federal extended jobless benefits programme is set to expire on May 31st.