The Labor Department said Thursday that first-time claims increased by 18,000 in the week ending April 3, to a seasonally adjusted 460,000. That's worse than economists' estimates of a drop to 435,000, according to a survey by Thomson Reuters.
The report covers the week that includes the Easter holiday, and a Labor Department analyst said seasonal adjustment for Easter can be difficult since the Easter holiday occurs in different weeks each year.
California also closed its state offices for a holiday March 31 honoring Cesar Chavez, the analyst said, which likely held down the claims figures. On an unadjusted basis, claims rose by 6,500 to nearly 415,000.
Economists closely watch unemployment claims, which are seen as a gauge of layoffs and a measure of companies' willingness to hire new workers.
The four week average, which smooths volatility, rose to 450,250. Two weeks ago, the average fell to its lowest level since September 2008, when Lehman Brothers collapsed and the financial crisis intensified.
Jobless claims peaked during the recession at 651,000 in late March 2009.
On a more positive note in the Labor Department's report, the tally of people continuing to claim benefits for more than a week fell by 131,000 to 4.55 million, the lowest level since December 2008.
That figure lags initial claims by a week. But it doesn't include millions of people who have used up the regular 26 weeks of benefits typically provided by states, and are receiving extended benefits for up to 73 additional weeks, paid for by the federal government.
Slightly more than 5.8 million people were receiving extended benefits in the week ended March 20, the latest data available, a drop of about 230,000 from the previous week. The extended benefit data isn't seasonally adjusted and is volatile from week to week.
Other recent reports have indicated that employers are slowly ramping up hiring. The Labor Department said Friday that the nationin March, the most in three years. The unemployment rate held at 9.7 percent for the third straight month.
But some companies are still cutting jobs. An oilfield services company, Denver-based EnerCrest, said this month it has closed five locations in four states, losing 225 employees. Business software company Computer Associates Inc. said Tuesday that it is cutting 1,000 jobs as part of a plan to reduce costs.