Jobless claims rise due to weather-related costs

WASHINGTON (AP) — New claims for unemployment benefits jumped unexpectedly last week, mostly because state agencies processed a backlog of claims caused by snowstorms the previous week.

The severe weather also increased temporary layoffs in the weather-sensitive construction and transportation industries.

Still, the increase in claims underscored concerns that layoffs are no longer slowing as fast as they were in the second half of last year.

"The fact that these snowstorms - as bad as they were — could have such an impact is more testimony to the fragility of the recovery," Diane Swonk, chief economist at Mesirow Financial, wrote in a note to clients. "The recovery is still on thin ice and lost momentum in the first quarter."

The jobless claims report, along with economic anxiety in Europe, contributed to unease on Wall Street. In mid-morning trading, the Dow Jones industrial average fell about 150 points, or about 1.5 percent. Broader stock averages also dropped.

A separate report today on orders for big-ticket manufactured goods was mixed. The Commerce Department said durable goods orders shot up in January by 3 percent, the most in six months.