"It looks like the underlying trend in claims is just stable at around 360,000, which is where we were for much of 2012"
- Ryan Wang, an economist at HSBC Securities USA Inc.
New applications for the unemployment benefits in the world's biggest economy rose more than expected during the last week, almost erasing a slide in the prior two weeks. The Labor Department said that the number of people who applied for U.S. jobless benefits surged 38,000 to a seasonally adjusted 368,000 in the week ended January 26, up from 330,000 a week earlier. The four-week moving average, which is a less volatile measure, stood at 352,000, from the previous week's revised average of 351,750. The number of people, who continue to receive unemployment aid, jumped 22,000 to 3.2 million in the week ended January 19. In the meantime, the employment cost index increased 0.5% after a 0.4% gain. A bigger-than-expected increase in the number of jobless claims and a unexpected contraction of the U.S. economy in the final quarter of 2012 are adding to concerns that the Fed will keep purchasing securities in order to boost economic recovery.
"It looks like the underlying trend in claims is just stable at around 360,000, which is where we were for much of 2012," said Ryan Wang, an economist at HSBC Securities USA Inc. in New York, who projected 367,000 filings. "Today's increase in claims I think is evidence that the low readings from early January were distorted."
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