New jobless claims rise in sign of weak job market

WASHINGTON (AP) — Initial claims for unemployment benefits rose for the second time in three weeks last week, signaling that layoffs are rising.

The Labor Department said today that new claims for jobless benefits jumped by 13,000 to a seasonally adjusted 472,000. Analysts expected a small drop, according to a survey by Thomson Reuters.

Greater layoffs by construction firms contributed to the increase, a Labor Department analyst said, as home sales and construction slumped in May after the expiration of a popular homebuyer tax credit. Summer layoffs in many school districts also added to the total, he said.

The four-week average, which smooths fluctuations, rose by 3,250 to 466,500, its highest level since March.