Initial jobless claims rise on administrative backlogs (MarketWatch) (13-01-2011)

WASHINGTON (MarketWatch) — The number of U.S. workers who filed new applications for jobless benefits rose sharply by 35,000 last week to 445,000, the highest level in more than two months; according to a government official, this is due largely to administrative backlogs.

Economists polled by MarketWatch had expected initial claims in the week ended Jan. 8 to fall to a seasonally adjusted 405,000. Last week’s claims were revised up by 1,000 to 410,000.

Scott Gibbons, a Labor Department spokesman, said the data can be particularly volatile in the first few weeks of January following the Christmas and New Year’s holidays. Many people don’t file claims right away and state unemployment offices are open fewer hours, leading to administrative delays.

The second week of January typically registers the highest number of claims each year, when seasonal factors are omitted. “I don’t think there all of a sudden is a bunch of additional layoffs,” Gibbons said.

Source: MarketWatch