In the Labor Department's report released April 4, jobless claims jumped 28,000 to 385,000 seasonally adjusted. That's the highest level since late November, 2012. These numbers reflect a 28,000 increase in people filing for unemployment, and the third straight week with numbers going in the wrong direction. While the 28,000 number is higher than expected the four-week average smooths the bad news a little. It still rose but isn't quite at 354,250.
Hiring slowed in March
These recent increases may be a sign that companies are beginning to cut jobs.
"U.S. private employers added 158,000 jobs in March, the smallest gain in five months and falling short of analyst expectations, a report by a payrolls processor showed on Wednesday." -- AOL Jobs
Speculation for the reasons for the slowdown include possible fallout from the sequester cuts, but economists suggest more data is needed before drawing any conclusions for the job market trajectory change, but suggest the downturn in hiring is likely temporary.
Another factor according to a Labor Department spokesman pointed to the fact that "it can be difficult to seasonally adjust the figures during the Easter holiday because the timing of the holiday varies from year to year."
ADP's proprietary private payrolls jobs report published monthly by the ADP Research Institute breaks down the 158,000 jobs added in March as follows:
- Small businesses (1-49 employees) +74,000
- Medium businesses (50-499 employees) +37,000
- Large businesses (500 or more employees) +47,000
Unemployment rate
The unemployment rate in February ticked down to 7.7% from January's 7.9%. The government will issue the March employment report on Friday, April 5. Forecasts.org projects the jobless rate will remain unchanged at 7.7%.
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