Applications for jobless benefits fell more than forecast last week, easing concern American employers are again slashing payrolls as the economy slows.
Claims dropped by 31,000, the first decline in a month, to 473,000 in the week ended August 21, Labor Department figures showed today in Washington. The total number of people receiving government payments exceeded 10 million for the first time in four months, reflecting an increase in those getting extended benefits.
The average number of claims over the past month climbed to the highest level since November even as the latest reading provided some relief to the drumbeat of negative economic data in recent weeks. Employers have delayed hiring plans and some have renewed firings as the year-old recovery shows signs of petering out, raising the risk consumer spending will weaken further.
The trend “is consistent with a lacklustre pace of job growth,” said Scott Brown, chief economist at Raymond James & Associates Inc in St Petersburg, Florida. “The private sector really hasn’t recovered enough.”
Stock climbed after the report eased concern job losses were increasing. The Standard & Poor’s 500 Index rose 0.3 per cent to 1,058.96 at 10.53 am in New York. Treasury securities were little changed, erasing earlier gains.
Less than forecast
The median estimate of 48 economists surveyed projected claims would drop to 490,000. Forecasts ranged from 475,000 to 510,000. The government revised the prior week’s claims figure up to 504,000, the highest level in nine months, from a previously reported 500,000.
There were no special factors influencing last week’s data, a Labor Department spokesman told reporters as the figures were being released.
The four-week moving average of claims increased to 486,750 from 483,500 the prior week.
The number of people continuing to collect unemployment benefits dropped by 62,000 to 4.46 million in the week ended August 14 from 4.52 million the prior week.
The continuing claims figure does not include those receiving extended benefits under federal programmes.
