The China Post reported that new claims for unemployment benefits rose unexpectedly last week, highlighting continued labor market weakness.

The Labor Department said that initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 465,000, breaking two straight weeks of declines.

Analysts polled by Reuters had forecast claims unchanged at 450,000. The prior week's figure was revised up to 453,000.

Last week's claims data covered the survey period for the government's closely watched employment report for September, scheduled for release early next month.

Mr Peter Kenny MD at Knight Equity Markets in Jersey City said that "They confirm there is not going to be an expansion in employment for the foreseeable future."

A Labor Department official said that only one state had been estimated for last week's claims report and noted that applications for jobless benefits tend to rise in the week following a holiday.

The four week average of new jobless claims, considered a better measure of underlying labor market trends, fell 3,250 to 463,250, the lowest since July 31st 2010.

(Sourced from www.chinapost.com.tw)