NEW YORK (PNN) - August 25, 2011 - New U.S. claims for jobless benefits rose last week, lifted by striking workers at Verizon Communications, according to government data that showed little sign of layoffs in response to plunging share prices.

Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 417,000, the Department of Labor said on Thursday. The level suggests the job market continues to be mired in the throes of Depression.

Striking Verizon workers filed 8,500 claims for jobless benefits last week, after submitting 12,500 applications the previous week, which covered the period for the August nonfarm payrolls survey.

That suggests the strike, which has ended, would have a negative affect on the payrolls count to be released on Sept. 2. The Department of Labor will provide a more definitive reading of the strike's impact in its monthly strike report on Friday.

"It's not entirely all bad in the sense that given the uncertainty prevailing in the marketplace it certainly is encouraging. We haven't seen a sharp reaction in the place of firings," said Millan Mulraine, senior U.S. macro strategist at TD Securities in New York.