Initial unemployment claims rise unexpectedly

The four-week moving average, a less volatile measure than the weekly figures, dropped from 440,250 last week to 438,500, the first decrease in seven weeks.

Initial applications are above the 400,000 mark, higher than what economists say signals steady job growth. 

The number of people continuing to collect jobless benefits dropped by 46,000, the lowest level in a month, to 3.69 million, in the week that ended May 14.  

Those who have used up their traditional 26 weeks of state benefits and are collecting federal emergency and extended payments dropped by about 63,215 to 4.05 million in the week ending May 7.

The continuing claims figure does not include the number of workers receiving extended benefits under federal programs.

Overall, 40 states and territories reported a decrease in claims, while 13 showed an increase.

So far, lawmakers have failed to move any major job legislation forward this Congress, with Republicans and Democrats rolling out several proposals in the past couple of weeks. But there’s been little conversation and no agreement on how to best spur job creation outside of the business-focused tax incentives put into place by legislation passed at the end of 2010. 

House Republicans were rolling out a so-called jobs agenda on Thursday morning that includes tax reform, trade issues and deregulation of business they say pairs with their message that reducing federal spending will boost economic growth and lead to more jobs. 

A separate report showed that the economy grew 1.8 percent in the January-March quarter, a slowdown from the 3.1 percent annual pace during the final three months of last year. 

So far, employers have added an average of more than 250,000 jobs in each of the past three months, the fastest rate in five years, even before the recession started in December 2007. The overall unemployment rate is 9 percent.

The largest increases in initial claims for the week ending May 14 were in Florida (+1,340), Georgia (+747), New Mexico (+415), Idaho (+282) and Hawaii (+236), while the largest decreases were in California (-6,828), Michigan (-6,740), New York (-2,569), Alabama (-2,093) and Wisconsin (-2,079).