Jobless Claims Rise More Than Expected

Initial jobless claims rose more than expected last week.

Claims increased to 26,000 to 436,000 in the week ending Nov. 27, The Department of Labor said. The revised average for the previous week was 410,000.

A survey of economist by Reuters forecast claims rising to 425,000 from the previously reported 407,000.

Retailers took on staff last month ahead of the holiday shopping season, which should provide a boost for consumer spending. Still, the sluggish economy means that employers are reluctant to permanently expand their payroll.

"The recovery in employment will continue but it will be very slow," Hugh Johnson, chief investment officer at Hugh Johnson Advisors LLC told Bloomberg News before the report. "We're at the very early stages" of sustained job growth.

The four-week moving average, a clearer measure of unemployment trends, fell 5,750 to 431,0000. The revised average for the previous week was 436,750.