WASHINGTON - The number of Americans seeking unemployment aid rose to a four-month high last week, although the increase partly reflects seasonal distortions around Easter.
Weekly applications increased 28,000 to a seasonally adjusted 385,000, the Labor Department said Thursday. It was the third-straight weekly increase and the highest level since late November. The four-week average, a less volatile measure, rose to 354,250.
A Labor Department spokesman says it can be difficult to seasonally adjust the figures during the Easter holiday because the timing of the holiday varies from year to year. Economists warned before the report that the data could be volatile.
“We have seasonal adjustment quirks,” said Brian Jones, a senior U.S. economist at Societe Generale in New York, who correctly projected the jump. “Next week, we expect claims to come right back down. The labor market is OK. It’s fine.”
The claims week included Good Friday on March 29 before the Easter holiday, which was earlier than the last four years. Claims for the Virgin Islands and California were estimated, a Labor Department spokesman said as the figures were being released.
Applications are a proxy for layoffs. The recent increases could suggest that companies are cutting jobs, possibly because of steep government spending cuts that began March 1. Other reports have pointed to that possible trend, although most economists have said that any reductions are likely temporary.
The government will issue the March employment report today.
Job growth has picked up in recent months. Employers added an average of 200,000 jobs per month from November through February. That’s nearly double the average from last spring.
Stronger economic growth this year has prompted more hiring. A steady housing recovery has spurred new home construction and prices. Higher home prices make Americans feel wealthier, which can lead to more spending.
In February, consumer spending rose by the most in five months.
Two reports Wednesday,however, suggested companies may have grown more cautious last month. Services companies grew in March but at a slower pace than in February, according to the Institute for Supply Management, a trade group. Service firms, which include retailers, hotels, restaurants and financial companies, cut back on hiring, and a measure of new orders fell.
And private employers added fewer jobs in March compared with February, according to payroll processor ADP. Construction firms didn’t add any positions after three months of strong gains.
Information for this article was contributed by Jeanna Smialek and Shobhana Chandra of Bloomberg News.
Business, Pages 25 on 04/05/2013