[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|
Status: Not Logged In; Sign In
Business Title: Initial Jobless Claims in U.S. Hold at Four-Year Low Feb. 23 (Bloomberg) -- The number of Americans filing first-time claims for unemployment insurance payments last week held at a four-year low, more evidence the labor market is improving. Applications for jobless benefits were unchanged in the week ended Feb. 18 at 351,000, the fewest since March 2008, Labor Department figures showed today. The median projection in a Bloomberg News survey called for 355,000 claims, marking the fourth straight week that the figures have been better than forecast. The number of people on unemployment benefit rolls dropped to the lowest level since August 2008. Fewer headcount reductions show companies may be growing more optimistic about the outlook for the world’s biggest economy. The recent drop in jobless claims sets the stage for bigger gains in hiring, which would bolster consumer confidence and drive spending. “The strength we’ve had in the last few months is continuing,” said Guy Berger, an economist at RBS Securities Inc. in Stamford, Connecticut, who forecast 350,000 claims. “Barring any surprises, February looks like another good month for payroll growth.” The Standard & Poor’s 500 Index lost 0.2 percent to 1,355.27 at 10:04 a.m. in New York, as a 6.6 percent drop in Hewlett-Packard Co. shares outweighed the jobless claims report. The Dow Jones Industrial Average retreated 14.76 points, or 0.1 percent, to 12,921.21. Estimates for first-time claims ranged from 330,000 to 370,000 in the Bloomberg News survey of 47 economists. The Labor Department initially reported the prior week’s applications at 348,000. Survey Week Last week included the 12th of the month, which coincides with the period the Labor Department uses in its survey of employers to calculate monthly payroll growth. That report will be released March 9. A Labor Department official today said there was “nothing unusual” that affected today’s figures. The four-week moving average, a less-volatile measure, declined to 359,000, also the lowest since March 2008, from 366,000. The number of people continuing to collect jobless benefits dropped by 52,000 in the week ended Feb. 11 to 3.39 million. The continuing claims figure does not include the number of workers receiving extended benefits under federal programs. Those who’ve used up their traditional benefits and are now collecting emergency and extended payments decreased by about 69,000 to 3.41 million in the week ended Feb. 4. 48 States Decline The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 2.7 percent in the week ended Feb. 11, today’s report showed. Forty-eight states and territories reported a decrease in claims, while five had an increase. The Labor Department said it received estimates from California and Virginia for claims in the latest week. It had to estimate claims for Hawaii. Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates. Congress voted last week to maintain expanded unemployment benefits through Dec. 31. The $30 billion extension gradually reduces the number of weeks recipients can receive benefits, down from the current 99 weeks, according to separate summaries provided by Democrats and Republicans on the House Ways and Means Committee. By the end of the year, most states would offer maximum benefits for 63 weeks, while people in high-unemployment states would be eligible for 73 weeks of benefits. Obama on Labor President Barack Obama signed the bill into law yesterday. The measure also extended a two percentage-point tax cut and avoided a cut in doctors’ Medicare reimbursements. “Wherever we have an opportunity, we’re going to take steps on our own to keep this economy moving,” Obama said earlier this week. An economy that’s expanding faster could stimulate more hiring. Macy’s Inc., the second-biggest U.S. department-store chain, may hire about 4,000 new employees this year, matching the number of additions it made last year. “Given that our business is growing, we are of course hiring,” Jim Sluzewski, a spokesman for the Cincinnati-based retailer, said in a Feb. 17 e-mail. “We added about 4,000 total positions in 2011 and my presumption is that it will be roughly similar in 2012 but planning is ongoing.” --With assistance from Cotten Timberlake and Kristy Scheuble in Washington. Editor: Vince Golle, James Tyson
Post Comment Private Reply Ignore Thread |
|
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|