The number of US workers filing new claims for jobless assistance jumped by 69,000 last week to the highest level in over two years, government data today showed.
The Labor Department said initial claims for state insurance benefit were 375,000 in the week ending January 26th, the highest since October 2005, when claims reached 376,000 in the wake of Hurricane Katrina.
A Labor Department official said it was also the largest weekly increase since September 2005, when claims had mounted by 95,000.
US stock index futures and the dollar fell after jobless claims, while bond prices rallied on the prospect of another cut in interest rates by the Federal Reserve.
The four-week average of weekly claims, which helps smooth out fluctuations to expose the underlying jobs trend, increased to 325,750 last week from 315,500 the week before.