Jobless claims jump to 294,000, highest in a year

Jobless claims jumped to 294,000 in the first week of May, the Department of Labor reported Thursday, up 20,000 from a week earlier.

Economists had expected first-time unemployment insurance claims to drop to 267,000, adjusted for seasonal variations.

Instead, they rose for a third straight week to the highest level since February of last year.

Jobless claims had been running low throughout the spring, a sign to investors and officials at the Federal Reserve that the labor market recovery has yet to deteriorate. Lower claims represent fewer layoffs and greater net job growth.

Even with Thursday's increase, claims still are not at the level that would suggest job losses. Economists have calculated that about 300,000 to 325,000 would signal rising unemployment. It's been 62 straight weeks since unemployment applications hit the 300,000 mark, the longest such streak since 1973, when the labor force was much smaller. Furthermore, the four-week moving average of claims remained low at, 268,250.