New jobless claims rose by 7,000 to 284,000 in the first full week of 2016, the Department of Labor reported Thursday.
The jump in applications for unemployment benefits defied the expectations of private-sector economists, who had the number to edge down to 275,000 from 277,000 the previous week, according to a poll conducted by Bloomberg. The Labor Department adjusts the claims numbers to smooth out predictable seasonal variations.
The rise in first-time claims pulled up the four-week moving average by 3,000 to 278,750. That was the highest such mark since July.
Applications for unemployment benefits have run at decades-low levels in recent months, providing one of the strongest indications that the jobs recovery still has momentum. Thursday’s report, however, contains hints that claims are no longer trending downward.
Jobless claims are reported from state agencies weekly, providing a leading indicator about layoffs.
First-time claims fell as low as 255,000 over the summer, and have oscillated near rock-bottom lows for months.
But in recent weeks the trend appears to be headed back up.
The biggest increase in claims came in New York, which saw applications rise by over 15,000 because of layoffs in transportation and warehousing, restaurants, and construction. Georgia and Pennsylvania also experienced jobless claims over 10,000, which they attributed to layoffs in manufacturing, construction, and other industries.
Despite Thursday’s disappointing report, claims haven’t risen above 300,000 since February. During that time, the unemployment rate has fallen from 5.5 percent to 5 percent.
