Initial jobless claims climb back over 400,000

Initial jobless claims rose last week, climbing back over 400,000 after dipping below that threshold the prior week for the first time in months. The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Oct. 1 increased by 6,000 to 401,000 from 395,000 the previous week, which was revised upward 4,000. Analysts surveyed by Econoday expected 410,000 new jobless claims last week with a range of estimates between 395,000 and 415,000. Most economists believe weekly jobless claims lower than 400,000 indicate the economy is expanding and jobs growth is strengthening. The four-week moving average, which is considered a less volatile indicator than weekly claims, fell by 4,000 claims to 414,000 from the prior week’s 418,000. The seasonally adjusted insured unemployment rate for the week ended Sept. 24 slid to 2.9% from 3%, according to the Labor Department. The total number of people receiving some sort of federal unemployment benefits for the week ended Sept. 17 fell to 6.86 million from 6.98 million the prior week. On Friday, the Labor Department reports nonfarm payroll data and many analysts expect the unemployment rate to rise somewhat from 9.1% for August. Earlier this week, the ADP National Employment Report showed the private sector added 91,000 jobs in September. TrimTabs Investment Research estimates the economy added just 64,000 jobs last month. Write to Jason Philyaw. Follow him on Twitter: @jrphilyaw.