WASHINGTON -- Jobless claims climbed to their highest level in nearly three years last week, surprising analysts who had expected a much smaller increase.
Initial jobless claims leapt 18,000 to 383,000 in the week ended Saturday, reaching the highest level since July 4, 1998, the Labor Department said Thursday.
Economists surveyed by Thomson Financial/First Call estimated jobless claims would advance to 375,000. But the weekly reports are notoriously volatile.
The four-week moving average of claims, which smoothes out weekly fluctuations, grew 2,000 to 377,500 last week.
With the economy slowing and corporate profits in a pinch, old-line and technology companies have been laying off workers. So far, however, the low unemployment rate has only inched higher, remaining at levels not seen in three decades. The Labor Department's full report for March employment is due for release Friday, with economists expecting the unemployment rate to rise to 4.3% from 4.2%.
The Federal Reserve has lowered short-term interest rates by one and a half percentage points since January to give a boost to the economy. Some investors expect the central bank to cut interest rates again in the next few weeks to keep the economy from sliding into a recession.
While growth is widely assumed to be about zero, there have been indications in the last month or so that the economy is stabilizing. In the last week, Fed officials have said they expect the economy to pick up in the second half.
Initial jobless claims leapt 18,000 to 383,000 in the week ended Saturday, reaching the highest level since July 4, 1998, the Labor Department said Thursday.
Economists surveyed by Thomson Financial/First Call estimated jobless claims would advance to 375,000. But the weekly reports are notoriously volatile.
The four-week moving average of claims, which smoothes out weekly fluctuations, grew 2,000 to 377,500 last week.
With the economy slowing and corporate profits in a pinch, old-line and technology companies have been laying off workers. So far, however, the low unemployment rate has only inched higher, remaining at levels not seen in three decades. The Labor Department's full report for March employment is due for release Friday, with economists expecting the unemployment rate to rise to 4.3% from 4.2%.
The Federal Reserve has lowered short-term interest rates by one and a half percentage points since January to give a boost to the economy. Some investors expect the central bank to cut interest rates again in the next few weeks to keep the economy from sliding into a recession.
While growth is widely assumed to be about zero, there have been indications in the last month or so that the economy is stabilizing. In the last week, Fed officials have said they expect the economy to pick up in the second half.
