Jobless claims highest since '05

The number of U.S. workers applying for unemployment benefits grew by 38,000 last week, increasing the number of initial jobless claims to a nearly three-year high of 407,000 for the one-week period ended March 29, according to the Department of Labor. The increase in unemployment claims, which was the largest since the week of Sept. 17, 2005, is the latest sign that consumer spending — a key indicator of economic activity — could slow. The four-week moving average of new claims filed was 374,500, an increase of 15,750 from the previous week and the highest reading since October 2005. Meanwhile, new jobless claims for the one-week period ended March 22 were revised upward to 369,000, from the 366,000 claims that were originally reported.