The Labor Department this morning reported that first-time filings for state unemployment benefits tallied 35,000 more last week, hitting 380,000. Economists predicted initial claims to surge by 20,000 for the week ended April 26. The 4-week moving average of initial claims fell by 6,500, standing at 363,750.

Meanwhile, continuing jobless claims surged 74,000, hitting 3.02 million the highest level in 4 years. The 4-week average of continuing claims rose to 2.98 million, an increase of 16,750, inching higher to a level not seen since May 2004. Most economists agree that claim readings consistently higher than 350,000 indicate significant weakness in the labor market.

The U.S. insured unemployment rate, measuring the percentage of all workers covered by unemployment insurance and collecting benefits, rose to 2.3% from 2.2%.