Rise in Jobless Claims Surprises Economists

Hundreds of thousands of people lost their jobs and filed for unemployment last week. Officials processed claims at a seasonally-adjusted rate of 484,000 a week, up 24,000 from the week before, according to the Department of Labor. The rise in initial unemployment claims was the second in a row.

Economists were surprised and experts are making excuses for the numbers, saying the Easter holiday (as well as Cesar Chavez Day in Califorornia) delayed the processing of claims and created a backlog. The Journal's MarketWatch quotes a Labor Department official saying: "I don't think there is a whole lot of layoffs going on."

Mike Feroli, economist at JP Morgan Chase Bank, told the Associated Press the rise was "a puzzle against the backdrop of generally improving economic data." Some experts, including Federal Reserve Chairman Ben Bernanke, suggest worker productivity may be to partly to blame for the sluggish job market.

Whatever the case, any rate of initial unemployment claims over 400,000 a week reflects a weak job market where too many employers are forced to cut employees and others are reluctant to hire.