Jobless claims rise above expectations


Yahoonews
July 20, 2011

WASHINGTON (Reuters) - The number of Americans filing new claims for unemployment benefits rose more than expected last week, pointing to a labor market that is struggling to regain momentum.
Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 418,000, the Labor Department said on Thursday.
Economists polled by Reuters had forecast claims rising to 410,000 from a previously reported 405,000.
"We're just stuck in this trend between 410,000 and 430,000. Generally we're just really not seeing any improvement but also not much worsening," said Jeffrey Greenberg, an economist with Nomura Securities in New York.
Stock index futures held earlier gains after the data, while the dollar extended losses against the euro.
The claims data covered the survey period for the closely watched nonfarm payrolls count for July, which will be released on August 5.
Initial claims fell 11,000 between the June and July survey periods, suggesting a modest improvement in payrolls after June's paltry 18,000 gain.
Job growth has faltered in the last two months, in line with the generally weak tone in the economy.
A rise in layoffs held back payroll growth in May, according to the department's latest Job Openings and Labor Turnover Survey, which was released last week.
Layoffs were probably behind the downshift in employment growth in June as well.

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