Sharp increase in US unemployment claimants

The number of people seeking unemployment benefits in the US rose sharply last week, after two straight weeks of declines.

The US Labour Department said that initial claims for unemployment aid rose 20,000 to a seasonally adjusted 457,000 for the week ending October 30. Wall Street analysts polled by Thomson Reuters had expected a smaller rise.

The increase came after claims fell in four of the previous five weeks. Those drops had brought claims to their lowest level since July and raised hopes the job market was improving.

Instead, claims have risen back above the 450,000 mark they have fluctuated around all year.

Experts say claims will need to drop below 425,000 to signal sustained job gains.