The number of Americans filing new claims for unemployment benefits fell less than expected last week, but a lingering backlog of applications in California makes it difficult to get a good read of labor market conditions.
Initial claims for state unemployment benefits fell 12,000 to a seasonally adjusted 350,000, the Labor Department said on Thursday. Claims for the prior week were revised to show 4,000 more applications filed than previously reported.
Technical problems as California converted to a new computer system have distorted the claims data since September and a Labor Department analyst said claims from the backlog in California were still working their way through the system.
Economists, who had expected first-time applications to fall to 340,000 in the week ending October 19, say claims should drop back to levels consistent with a gradual labor market recovery once the backlog in California is cleared.
The four-week moving average for new claims, considered a better measure of labor market trends, rose 10,750 to 348,250.
Source: Reuters
Source: Reuters
