Jobless Claims Hit Three-Month High

Bloomberg reports:

New applications for unemployment benefits in the U.S. unexpectedly rose last week to the highest level in three months, a sign progress in the labor market may be stalling.

Jobless claims increased by 25, 000 to 429, 000 in the week ended April 23, the most since late January, Labor Department figures showed today in Washington. The government anticipates a drop in unadjusted applications during the Good Friday holiday week, something that didn’t happen this year, a Labor Department spokesman said.

The report also showed the number of people on unemployment benefit rolls and those receiving extended payments dropped, a sign the jobless rate may fall in coming months. Companies have been cautious about ramping up hiring until they see further signs the recovery is self-sustaining, one reason why Federal Reserve policy makers yesterday pledged to complete their asset- purchase plan by June and keep borrowing costs near zero.

“It’s clearly disappointing,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. “It may be that the pace of improvement is slowing.”