U.S. Unemployment Benefit Rolls Climb to 4-Year High

http://www.bloomberg.com/apps/news?pid=20601087&sid=auVDks4GddDI&refer=home

By Courtney Schlisserman

May 1 (Bloomberg) -- The number of Americans receiving unemployment insurance climbed to a four-year high, a sign of a weakening labor market as employers remain reluctant to hire. First-time claims for jobless benefits also rose.

The total number of people getting assistance increased to 3.019 million, the most since April 2004, in the week ended April 19, the Labor Department said today in Washington. Initial claims increased by 35,000 to a four-week high of 380,000 in the week ended April 26.

Companies are firing staff as the worst housing recession in more than a quarter century reduces home prices, and slows consumer spending and business investment. The department tomorrow may report the U.S. lost jobs for a fourth straight month in April, according to a Bloomberg News survey of economists.

``This is the level of jobless claims we would expect to see because we've got job losses in the economy,'' Ellen Zentner, economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, said in an interview with Bloomberg Television. ``This is a labor market where employers are conducting hiring freezes. They've delayed hiring plans.''

The Commerce Department said separately that consumer spending rose 0.4 percent in March, more than forecast, as households paid more for goods and services. Stripping out the effect of inflation, spending ticked up 0.1 percent.

Economists' Forecasts

Initial jobless claims were forecast to increase to 365,000 from a previously reported 342,000 in the prior week, according to the median projection of 35 economists in a Bloomberg survey. Estimates ranged from 340,000 to 375,000.

FULL story at link.