Weekly Jobless Claims Drop Proves to Be Short-Lived

0 Posted by - October 18, 2012 - Career & Business, Economics, Money

 Weekly Jobless Claims Drop Proves to Be Short LivedWeekly applications for U.S. unemployment benefits jumped 46,000 last week to a seasonally adjusted 388,000, the highest in four months. The increase represents a rebound from the previous week’s sharp drop. Both swings were largely due to technical factors.

The Labor Department says the four-week average of applications, a less volatile measure, fell slightly to 365,500, a level consistent with modest hiring.

Last week, California reported a large drop in applications, pushing down the overall figure to the lowest since February 2008.

This week, it reported a significant increase as it processed applications delayed from the previous week. (Read More: Why Jobless Claims May Not Be as Good as Market Thinks.)

A department spokesman says the seasonally adjusted numbers “are being distorted … by an issue of timing.”

CONTINUED at CNBC.

No comments