US Jobless Claims Rise 54K To 524K

The number of idled workers filing new claims for jobless benefits jumped last week as the recession forces companies to cut costs.

Initial claims for unemployment insurance benefits increased by 54,000 to 524,000, after seasonal adjustments, in the week that ended Jan. 10, the Labor Department said.

The increase was the first in three weeks. The four-week average of new claims last week fell to 518,500 from 526,500.

The number of new jobless claims filed nationwide was bigger than Wall Street had expected. Economists surveyed by Dow Jones was for claims to rise by 46,000 to 513,000 for the week ending Jan. 10.