Applications for U.S. unemployment benefits declined more than forecast last week, easing concern that employers will accelerate firings as the world’s largest economy cools.
Initial jobless claims dropped by 27,000 to 451,000 in the week ended Sept. 4, U.S. Labor Department figures showed today in Washington. The total number of people receiving unemployment insurance was little changed, while those getting extended payments rose.
Job creation needs to pick up to prevent a slide in consumer spending, which accounts for 70% of the economy, and reduce the risk of a relapse into recession. The Federal Reserve said yesterday in its latest regional survey that the economy maintained its expansion while showing signs of a "deceleration" from mid-July through August.
Jobless benefits applications were projected to fall to 470,000 from a previously reported 472,000 for the prior week, according to the median forecast of 46 economists in a Bloomberg News survey. Estimates ranged from 460,000 to 482,000. The Labor Department revised the prior week’s figure to 478,000.
For the latest reporting week, nine states didn’t file claims data to the Labor Department in Washington because of the federal holiday earlier this week, a Labor Department official told reporters. As a result, California and Virginia estimated their figures and the U.S. government estimated the other seven, the official said.
The four-week moving average, a less volatile measure than the weekly figures, declined to 477,750 last week from 487,000, today’s report showed.
The number of people continuing to receive jobless benefits fell by 2,000 in the week ended Aug. 28 to 4.48 million. They were forecast to drop to 4.45 million.
The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs.
Those who’ve used up their traditional benefits and are now collecting emergency and extended payments increased by about 29,300 to 5.47 million in the week ended Aug. 21.
The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 3.5% in the week ended Aug. 28.
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