Initial jobless claims rose more than expected the week ending June 26 as new filings for unemployment benefits increased 13,000 to 472,000, the Labor Department reported Thursday.
Continuing claims rose to 4.616 million the week ending June 19 from the previous 4.573 million. Economists had expected 450,000 initial claims and 4.54 million continuing claims, according to the median estimate from a Thomson Reuters survey.
The four-week moving average for initial claims — a less volatile measure of job losses — rose for the sixth time in the past seven weeks. The average climbed to 466,500 to reach its highest level since March 6.
The four-week average for continuing claims fell to 4.568 million, the lowest level since Dec. 27, 2008.
Initial jobless claims have a loose inverse relationship with job creation, which is why many economists look to them for insight into monthly payroll reports. U.S. payroll data for June is being released Friday.
Anthony Chan, chief economist for JPMorgan Private Wealth Management in New York, estimates that 400,000 to 425,000 initial claims per week is consistent with the creation of 115,000 to 125,000 new jobs the U.S. economy needs to accommodate new entries to the workforce each month.
Initial jobless claims for the week ending June 19 were revised higher Thursday to 459,000 from 457,000. Continuing claims for the week ending June 12 were revised upward to 4.573 million from 4.548 million.
Last week, Congress did not extend unemployment benefits for programs established during the economic recession. Those claims do not show up in the weekly unemployment insurance data, but are recorded separately.
A Labor Department official said that without extended benefits, workers filing claims under extended benefits programs will not be able to graduate from one extended program to another, creating a “snowballing effect.”
There are four tiers of extended unemployment benefits created by Congress since 2008. The Labor Department said 4.5 million workers filed for claims under the programs the week ending June 12.
