The number of newly laid-off workers seeking unemployment benefits rose last week, a sign that jobs remain scarce even as the economy recovers.

The Labor Department said first-time claims increased by 18,000 to a seasonally adjusted 460,000. That's worse than economists' estimates of a drop to 435,000, according to a survey by Thomson Reuters.

The report covers the week that includes the Easter holiday, and a Labor Department analyst said seasonal adjustment for that week can be difficult since the Easter holiday occurs in different weeks each year...