Jobless claims shoot up to highest point since September 2005
WASHINGTON — The Labor Department reported Thursday that new applications filed for unemployment insurance jumped by a seasonally adjusted 38,000 to 407,000 for the week ending March 29.
The increase left claims at their highest point since Sept. 17, 2005, after the blows of the devastating Gulf Coast hurricanes.
The latest snapshot of labor activity was worse than economists had anticipated. They had predicted claims would be much lower, around 365,000.
In other economic news, the Institute for Supply Management said the nation’s service sector — including retailers, hotels, insurance companies and other firms — contracted in March but not as much as the month before faxless payday advance. The institute’s index registered 49.6 last month, compared to 49.3 in February. A reading below 50 indicates contraction, while a reading above 50 indicates growth.