Jobless claims surge in latest week

First-time claims jump back to 375,000, the loftiest level since October

First-time jobless claims rocketed higher last week, adding to concern that the economy may be stalled.

Claims had been one of the few lonely bright spot in a sea of gloomy indicators and the sharp rise dents the belief that the labor market might remain strong.

Initial claims for state unemployment benefits rose 69,000 in the week ended Jan. 26, reaching 375,000, the Labor Department reported Thursday. It marked the highest level since early October -- and the biggest weekly jump since September 2005 in the wake of Hurricane Katrina. Read government release.

Before this sharp rise, jobless claims had fallen by a net of 51,000 since late December, confounding economists who had expected claims to gradually rise as the nation's economy slowed.

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