The number of claims for unemployment benefits rose more than expected last week, while the number of workers continuing to filing claims for unemployment benefits exceeded 6.1 million, the Labor Department said on Thursday. The Labor Department report found that initial claims for unemployment compensation rose to a seasonally adjusted 640,000, up from a revised 613,000 the previous week. That was slightly above analysts' expectations of 635,000. The number of unemployment claims filed is an important indicator for economists about the health of the U.S. economy. Economists widely believe that a sustained decline in the number of initial claims could signal that the end of the recession is nearing. Jobless claims have historically peaked six to 10 weeks before recessions end, according to a report by Goldman Sachs. But, the latest report shows job losses remain high. The four-week average of claims, dropped slightly to 646,750, about 12,000 below the peak in early April. Goldman Sachs economists have said a decline of 30,000 to 40,000 in the four-week average is needed to signal a peak. The high level of continuing claims is a sign that many laid-off workers are having difficulty finding new jobs. “The world economy is going through the most severe crisis in generations,” Treasury Secretary Timothy Geithner said Wednesday, showing little confidence that the economy is going to be better any time soon.
