Jobless claims in U.S. rise to highest level in nine months

WASHINGTON – The number of Americans filing for unemployment benefits rose last week to the highest level in more than nine months, a sign harsh winter weather may be stalling the job market’s progress.

Jobless claims increased by 7,000 to 320,000 in the week ended Feb. 28, the most since May, from 313,000 in the prior period, a Labor Department report showed Thursday in Washington. The median forecast of 52 economists surveyed by Bloomberg expected claims of 295,000.

Snowfall in parts of the country may have caused some workers to have been temporarily dismissed, leading to the increase in filings. A report tomorrow may show employers added 235,000 workers in February, while the unemployment rate is expected to drop to 5.6 percent, matching a more than six-year low.

“Claims can be volatile,” and the labor market may be due for some cooling, Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York, said before the report. “The job numbers will be good, but we’ve been so strong for the last three months, it’s hard for me to think that’s going to be sustained.”

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Survey results

Estimates in the Bloomberg survey of economists ranged from 280,000 to 325,000.

There was nothing unusual in the state data, according to the report.

Details for the prior week already indicated inclement weather was one reason behind the jump. Kentucky, Pennsylvania and Rhode Island either specifically mentioned weather as a reason why applications climbed in the week ended Feb. 21 or said workers in construction were among those filing, the industry that is often most affected by snowy conditions.

“Last week was much colder than usual, with more than twice the snowfall of the previous week,” Ian Shepherdson, chief economist at Pantheon Macroeconomics Ltd. in Newcastle, U.K., said in a research note. “This week too has seen significant snow in the eastern half of the country, so claims likely won’t revert to trend, which is about 290,000, for another couple of weeks.”

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