Stock futures were already down. Now, they're dropping even more!
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WASHINGTON (MarketWatch) -- The number of people applying for unemployment benefits shot up 25,000 in the latest week, government data showed Thursday, indicating continued weakness in the U.S. job market.
Initial jobless claims rose to 471,000 in the week ended May 15, the highest level in a month, according to the Labor Department. About one-third of the increase occurred in financially stressed California. Economists surveyed by MarketWatch predicted initial claims would drop on the week, falling to a seasonally adjusted 440,000 from last week's reading of 446,000.
A Labor Department official said there were no unusual factors to explain the increase.
The four-week average of initial claims -- a better gauge of employment trends than the volatile weekly number -- also rose, up by 3,000 to 453,500. Read the full government report.
While they've fallen 25% from 12 months ago, initial claims are now 3.6% higher compared with the end of 2009 in a reflection of the scarcity of new jobs. Most economists say claims need to fall below 400,000 to signify accelerating job creation.
