Unemployment Benefits Claims Increase by Largest Amount Since February

For the first time in five weeks, the U.S. Labor Department witnessed an increase in the amount of applications for unemployment benefits. According to The Associated Press, applications rose by 25,000 from the previous week to bring the overall amount of unemployed benefits claims to 471,000. Last week’s dramatic increase was the most substantial jump since February, when there was a rise of 40,000 unemployment benefits applications.

Senior economist at BMO Capital Markets, Jennifer Lee, commented on the unexpected and unfortunate statistics that were unveiled by the U.S. Labor Department on Thursday. Lee told The Associated Press, “Although no one expects this volatile series to go in one direction every single week, this is clearly a disappointment.” The dramatic increase in jobless claims is a strong indication of how competitive and volatile the job market continues to be.

The amount of applications for unemployment benefits last week was the highest total since 480,000 claims were filed during week ending on Saturday, April 10. As the economy continues to grow, many who had once given up their job search have reportedly been lured back into the market in an attempt to become employed. Payrolls in the United States increased by 290,000 jobs during the month of April, but the unemployment rate rose to 9.9 percent.