The number of newly unemployed Americans seeking jobless benefits increased more than expected last week, according to a Labor Department report released Thursday. The increase came after claims were falling steadily for five straight weeks. Initial claims for unemployment insurance rose by 17,000 to a seasonally adjusted 474,000, the Labor Department said. That number was above analysts" expectations of 460,000 new claims. The four-week average of claims fell to 473,750-its 14th straight decline and the lowest level since September 2008. Still, claims will have to fall to about 425,000 for several weeks to signal the economy is actually adding jobs, according to many economists. The number of people continuing to claim benefits fell by 303,000 to 5.16 million, the lowest level since February. The total unemployment benefit rolls have fallen in 11 of the past 12 weeks. But the so-called continuing claims do not include millions of people that have used up the regular 26 weeks of benefits typically provided by states, and are receiving extended benefits for up to 73 additional weeks, paid for by the federal government. About 4.6 million people were receiving extended benefits in the week that ended on November 21, the latest data available-that"s an increase of about 130,000 from the previous week, and is partly due to an extension of benefits that Congress enacted last month. The economy grew at a 2.8 percent pace in the July to September quarter and analysts say it is likely growing at a similar pace in the current quarter. But that is much slower than the average 6 percent rate in previous economic recoveries. As a result, most economists expect the unemployment rate to rise in coming months and remain above 9 percent through the end of next year.
