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US jobless claims reach highest level since May: Report

Friday, 06 March 2015 1:42 AM [ Last Update: Saturday, 07 March 2015 3:37 AM ]

A job seeker waits to be interviewed during a job fair at California's Great America theme park in Santa Clara on Feb. 6.

New unemployment claims in the United States have risen to their highest level since May last year, the Labor Department said Thursday.

Initial claims for state unemployment benefits went up by 7,000 reaching a seasonally adjusted 320,000 in the week ended on Feb. 28, the Labor Department said.

Thursday’s report also showed the number of Americans seeking unemployment aid increased by 17,000 reaching 2.42 million for the week ended Feb. 21.

"We suspect the pattern reflects the weather rather than fundamental deterioration. That said, we will, of course, be on watch for the possibility that the rise in the last two weeks marks a change in the trend," said Jim O'Sullivan, chief US economist at High Frequency Economics in Valhalla, New York.

The figures have raised concerns about the weakness in the labor market, suggesting some near-term weakness in economic growth.

“This is the third sharp spike in claims since November," said Pantheon Macroeconomics chief economist Ian Shepherdson.

Last month, a poll showed that a clear majority of Americans had experienced a financial shock last year and felt unprepared for a financial emergency six years after the Great Recession.

Eighty-two percent of US households reported suffering a financial shock such as a hospital visit, the loss of a spouse or major car or house repairs in 2014, showed the poll released on Feb. 26 by the Pew Charitable Trust.

Americans’ assessments of the US economy and job market deteriorated in February amid stagnant wages and weak business investment.

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