Applications to begin receiving unemployment benefits in the U.S. rose more than forecast last week, indicating the labour market will take time to improve.
Jobless claims increased by 26,000 to 436,000 in the week ended Nov. 27, Labor Department figures showed today in Washington. The less-volatile four-week moving average fell to the lowest level since August 2008. The total number of people receiving unemployment insurance increased, and those on extended payments rose.
After slowing the pace of firings in November, companies may be on the cusp of ramping up the hiring necessary to further boost consumer spending, which accounts for 70% of the economy. A Labor Department report tomorrow may show employers added 145,000 workers last month and the unemployment rate held at 9.6%.
The median projection of 47 economists surveyed called for 424,000 filings after claims dropped the prior week to the lowest level since July 2008. Jobless benefits applications were projected to climb from 407,000 initially reported for the prior week. Estimates ranged from 395,000 to 470,000.
The four-week moving average of jobless claims fell to 431,000 last week from 436,750, today’s report showed.
The number of people continuing to receive jobless benefits rose by 53,000 in the week ended Nov. 20 to 4.27 million. They were forecast to climb to 4.2 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 235,000 to 4.9 million in the week ended Nov. 13.
