The number of Americans filing first-time claims for unemployment benefits unexpectedly rose last week to the highest level since just after Hurricane Katrina in September 2005, Bloomberg reported.



Initial jobless claims increased by 38,000 in the week ended March 29 to 407,000, the Labor Department said today. The four-week moving average, a less volatile measure, rose to 374,500 last week from 358,750, the department said. Economists surveyed by Bloomberg News had forecast initial claims would remain unchanged at 366,000, according to the median of 40 estimates. Estimates ranged from 350,000 to 386,000.

The housing recession, coupled with escalating losses in financial markets, is prompting companies to dismiss workers and consumers to slow their spending. The Labor Department may report tomorrow that the United States lost jobs in March for a third consecutive month, according to economists surveyed.

The number of people remaining on benefit rolls increased by 97,000 to 2.937 million, the highest level since July 2004, in the prior week, Labor said. The unemployment rate among people eligible for benefits rose to 2.2 percent from 2.1 percent.