Claims for the prior week were revised to show 5,000 more applications received than previously reported. Washington hiked taxes in January and initiated sweeping budget cuts in March.
Data on jobless claims has been a relative bright spot in the U.S. labor market, and analysts will be cautious over reading too deeply into one week of dour data, which showed claims at their highest since late March.
job market trends, remains near its lowest levels since the start of the 2007-09 recession. Last week, the moving average rose 1,250 to 339,250. Many analysts have noted that a reticence by employers to lay off workers has made an outsized contribution to recent improvements in employment levels.
Last month, employers on net added 165,000 new jobs to their payrolls while the unemployment rate dropped to a four-year low at 7.5 percent. The improvement in employment has contrasted sharply with other data, including retail sales and manufacturing, that have suggested a modest cooling in the economy at the end of the first quarter that persisted early in the April-June period. The claims report showed the number of people still receiving benefits under regular state programs after an initial week of aid dropped 4,000 to about 3 million in the week ended May 4.
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