Unemployment claims rise more than expected

New claims for unemployment benefits rose unexpectedly for the first time in three weeks, a sign that employers are reluctant to hire during the slow economic recovery. 

Claims increased by 13,000 up to 462,000, the second increase in two months, from last week's revised 449,000 for the week ended Oct. 9, the Labor Department reported Thursday. 

The figures have hovered around 450,000 for most of the year, and hiring hasn't picked up enough pace to make a dent in the 9.6 percent unemployment rate. 

The economy needs jobless claims to drop into the low 400,000s or high 300,000s — a decrease of 50,000 to 70,000 a month — to reflect stronger job growth in the private sector and propel the recovery. 

The four-week moving average, which smoothes out the volatility of the weekly number and provides a better gauge of the employment situation, rose by 2,250 to 459,000.

The total number of people continuing to receive unemployment insurance fell by 112,000 in the week ended Oct. 2 to 4.4 million, the lowest since November 2008.

Those receiving extended benefits — up to 99 weeks in some states — who have exhausted their traditional benefits decreased by about 340,000 to 4.8 million in the week ended Sept. 25, the latest data available. 

The private sector added 64,000 jobs in September, while overall the economy lost 95,000, as the jobless rate held at 9.6 percent, according to the Labor Department's report on Oct. 8.