U.S. unemployment applications hit 8-month high

The number of Americans applying for unemployment benefits surged last week to the highest level in eight months, a troubling sign to appear one day ahead of the government’s report on April employment. The Labor Department says that the 43,000 spike in applications to a seasonally adjusted 474,000 last week was largely the result of unusual factors, including a high number of school systems in New York that closed for spring break. Still, it marked the third increase in four weeks. The four-week average, a less volatile measure, rose for the fourth straight week to 431,250. Applications have jumped 89,000, or 23%, in the past four weeks. “The trend is clearly upward, so that’s disconcerting,” says Kurt Karl, chief U.S. economist for Swiss Re. “When you get three or four weeks in a row of special factors, they’re no longer so special.” Applications near 375,000 are typically consistent with sustainable job growth. Weekly applications peaked during the recession at 659,000.