U.S. unemployment aid applications jump to 388K

5:44 AM, Oct 18, 2012   |    comments
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WASHINGTON (AP) - Weekly applications for U.S. unemployment benefits jumped 46,000 last week to a seasonally adjusted 388,000, the highest in four months.

The increase represents a rebound from the previous week's sharp drop. Both swings were largely due to technical factors.

The Labor Department says the four-week average of applications, a less volatile measure, fell slightly to 365,500, a level consistent with modest hiring.

Last week, California reported a large drop in applications, pushing down the overall figure to the lowest since February 2008.

This week, it reported a significant increase as it processed applications delayed from the previous week.

A department spokesman says the seasonally adjusted numbers "are being distorted ... by an issue of timing."

Applications are a proxy for layoffs. When they decline, it suggests hiring is improving.

The Associated Press