The number of Americans seeking initial unemployment benefits last week rose to its highest level in more than five years.
The government said today in a report showing the labour market is weakening as the US economy staggers.
The Labour Department said initial jobless claims rose by 18,000 to 408,000 for the week ended April 21st from an upwardly revised 390,000 reported for the week earlier. It was the highest level since March 23rd, 1996, when claims reached 428,000.
However, unadjusted data showed that a large portion of last week's climb was attributable to school layoffs in New York during spring break, a Labour Department spokeswoman said.
Even so, the four-week moving average - considered a more reliable barometer of employment conditions because it irons out weekly fluctuations - rose to 394,500 claims from 383,750 the previous week.
The rise in initial jobless claims was well above Wall Street's expectations.
The average forecast of a group of economists called for only a slight increase of 2,000 claims from the originally reported level of 385,000 claims seen in the week ended April 14th.