The number of first-time unemployment insurance claims defied expectations of a drop to 402,000 last week, instead rising from 416,000 to 418,000 and bringing overall unemployment levels to a nineteen-year high. Although the four-week moving average in new jobless claims---which averages out temporary fluctuations---declined for the third week in a row from 429,250 last week to 420,750, anything above 400,000 represents an excessively slack labor market. The rise in new unemployment claims, and the total 3.86 million workers currently on unemployment benefits, are indications that despite increases in production, the economy is still very weak and employers still extremely cautious.
See "Number getting jobless benefits at 19-year high", Tribune News Services, Chicago Tribune, May 16, 2002