Unemployment up to 26,000 last week (Reuters) (10-03-2011)

WASHINGTON – Jobless claims rose unexpectedly last week according to the government but stayed below a key level associated with labor market recovery.

As the Labor Department announced, after falling to a 2-1/2 year low the prior week, initial claims for state unemployment benefits increased 26,000 to a seasonally adjusted 397,000.

Economists polled by Reuters had forecast claims rising to 378,000. The prior week's figure was revised slightly up to 371,000 from the previously reported 368,000.

Source: Reuters