The US Department of Labor announced on Thursday that the number of American citizens that filled claims for unemployment for the first time increased in the week ending on March 15.

The initial claims for unemployment insurance rose by 22.000 to reach 378.000 last week, exceeding analysts’ expectations and reaching the highest level since the week of January 26, from 356,000 the prior week. In comparison, the four week average for the same period of time a year before was 324.000.

Overall, the number of people that live on unemployment benefits has increased to 2.865 million from 2.833 million. The overall number on the benefit rolls hit a three and a half years high a week earlier.

The current troubled markets that seem to be heading toward a recession have caused job cuts in the US companies, despite the Federal Reserve efforts to soften the deepening financial crisis.

Analysts were forecasting that the first time unemployment claim rates would increase to around 360.000 from the 353.000 reported a week earlier.

The report could show a further deterioration in the job market, despite the fact that the department said that the jobless people increases were caused by a strike by United Auto Workers union members at American Axle & Manufacturing Holdings.

The report also showed that the New York state saw a significant decrease in claims on the week with drop off of 13.504 due to fewer layoffs in the transportation and service industries, while in Illinois, Tennessee, Ohio, Florida, Indiana, Wisconsin, Michigan and California the unemployment rate saw an increase.