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Jobless claims rise sharply last week

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The U.S. Labor Department reported the biggest rise in jobless claims last week since Sept. 10, 2005, after Hurricane Katrina caused Gulf Coast businesses to lay off workers, reported the Associated Press. The figures come after the lowest level in jobless claims in 11 months the previous week.

Laid-off workers filing for jobless benefits for the first time increased 36,000 from the previous week to 325,000. The rise is bigger than the 20,000 that had been forecast, but analysts warn that the figures are more volatile this time of year because of the effects of seasonal holiday employment at retailers.

According to Bloomberg News, the four-week moving average, a less volatile measurement, rose to 309,250 from 307,750 a week earlier. On the other hand, the number of people continuing to collect state unemployment benefits decreased to 2.484 million from 2.523 million the week before.

Last month employers added 167,000 jobs and according to a survey by the National Association for Business Economics, one-third of company executives said they would increase payrolls in the next six months, up from 29 percent in the prior quarter.