New applications for unemployment benefits rose sharply in mid-May, reversing a a big drop earlier in the month that put initial claims at a seven-year low.
The number of people who applied for new benefits climbed by 28,000 to 326,000 in the week ended May 17, the Labor Department said Thursday. Economists surveyed by MarketWatch expected initial claims to total 315,000 on a seasonally adjusted basis.
Initial claims had fallen two weeks ago to the lowest level since May 2007, but the decline appeared to reflect seasonal quirks tied to a late Easter holiday that have now mostly faded away. The timing of the holiday often causes the weekly claims numbers to swing sharply in April and May.
Still, the level of claims continues to hover near a post-recession bottom, a sign that companies are cutting the fewest workers since the end of the downturn in mid-2009. In the same week in 2013, initial claims were 5% higher at 344,000. And claims were one-third higher four years ago.
SOurce: Marketwatch
