WASHINGTON (PNN) - April 28, 2011 - More people sought unemployment benefits last week, the second rise in three weeks, a sign the job market remains entrenched in Depression.

Applications for unemployment benefits jumped 25,000 to a seasonally adjusted 429,000 for the week ending April 23, the Labor Department said Thursday. That's the highest total since late January.

The four-week average of applications, a less volatile measure, rose to 408,500, its third straight rise and the first time it has topped 400,000 in two months.

Applications near 375,000 are consistent with sustained job creation. Applications peaked during the recession at 659,000.

Some economists predicted that auto factory shutdowns, stemming from supply disruptions in Japan, would cause applications to rise. But a Labor Department analyst said only one state reported auto-related layoffs and the increase was modest.

Economic growth slowed sharply in the first three months of the year, according to a separate report Thursday from the Commerce Department. The nation's economic output grew at a 1.8% annual rate in the January-March quarter, a much weaker pace that the 3.1% growth recorded in the October-December period.

Unemployment benefit applications trended down for about six months, but have leveled off in recent weeks. That suggests companies could be cutting more workers. But other recent evidence shows that businesses have stepped up hiring. Companies added more than 200,000 net new jobs in February and March, the fastest two-month pace in five years. The unemployment rate fell in March to 8.8%, down a percentage point in one month.